Centuria pays $86m for homemaker centre as LFR demand strengthens
Investor appetite for large-format retail (LFR) and repositioning-ready former big-box assets continues to firm, with Centuria’s $86.025 million acquisition of Melbourne’s Chadstone Homeplus Homemaker Centre underscoring renewed confidence in the sector.
GALLERY
The transaction, struck slightly above assessed market value, reflects growing competition for income-producing retail assets as buyers seek defensive cashflows and longer-term redevelopment upside amid improving pricing transparency.
Located on a 1.51-hectare site on Warrigal Road in Melbourne’s south-east, the centre comprises approximately 19,574 square metres of lettable area configured for bulky goods and homemaker retailing. The asset is anchored by a Bunnings Warehouse, which remains the primary traffic driver, and is supported by a mix of national retailers spanning furniture, appliances, flooring and fitness categories.
Positioned on one of Melbourne’s busiest arterial corridors and within proximity to the wider Chadstone retail precinct, the centre benefits from strong exposure within an established commercial catchment. Its scale and tenant mix continue to position it as a core homemaker destination within the south-east growth corridor.
According to Stonebridge Property Group, which marketed the transaction, the sale highlights a broader return of institutional capital into Victoria’s retail sector as investors look to position ahead of an anticipated recovery cycle. Factors including relative value, population growth and ongoing infrastructure investment are supporting renewed sentiment in the state.
Stonebridge national partner Justin Dowers said enquiry levels for Melbourne retail assets are strengthening as pricing expectations recalibrate.
“Although Victoria ranked as the third most active state for retail investment activity in 2025, we are now seeing increasing depth of enquiry for Melbourne-based retail assets, with competition returning as pricing expectations realign,” Dowers said.
He added that activity is expected to accelerate further through 2026 as confidence builds, with the Chadstone transaction demonstrating a clear return of scale-based investment in Victoria.
In Western Australia, parallel momentum is emerging across the same asset class. A newly built large-format retail centre in Canning Vale traded for $22.6 million, anchored by Officeworks and supported by tenants including Guzman y Gomez, Red Dot and Tribe Early Learning. The 1.23-hectare asset comprises close to 4,000 square metres of lettable area and carries a weighted average lease expiry of more than eight years.
Meanwhile, in Perth’s north-east, BWP Trust has sold a former Bunnings warehouse in Morley for $19.5 million. The 1.84-hectare site, which includes a 10,303 square metre building and more than 200 car spaces, sits within a planning framework that allows for higher-density redevelopment, adding long-term optionality for future residential or mixed-use outcomes.
Across all three transactions, tightening supply and increasing investor confidence are driving renewed activity in large-format retail assets nationally.
Images via The Urban Developer
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