Transaction Details and Pricing
Centuria Capital Group has secured the Chadstone Homeplus Homemaker Centre in Victoria for $86.025 million, marking a strategic addition to its retail property portfolio. The Centuria Capital Chadstone Homemaker Acquisition follows a public sales campaign that attracted compelling offers from several national investors, with Centuria (ASX: CNI) ultimately prevailing in the process.
The unconditional contract was executed on 23 January 2026 with BWP Trust (ASX: BWP), with settlement anticipated in June 2026. The purchase price represents a 1.1% premium to the property’s fair value of $85.1 million as at 31 December 2025, indicating strong market demand for quality retail assets anchored by blue-chip tenants.
Following the recent Bunnings lease extension through to 31 July 2030, BWP management undertook an extensive review of the property before proceeding with the public sales campaign. This lease extension formed part of BWP’s strategic asset management programme ahead of divestment.
| Metric | Detail |
|---|---|
| Purchase Price | $86.025 million |
| Fair Value (Dec 2025) | $85.1 million |
| Premium | 1.1% |
| Settlement | June 2026 |
| Key Tenant Lease Expiry | July 2030 |
What is a Homemaker Centre?
For investors new to commercial property classifications, homemaker centres represent a distinct retail asset class focused on large-format, bulky goods retailing. Unlike traditional shopping centres dominated by fashion and food operators, homemaker centres typically accommodate retailers requiring substantial floor space for product display and customer browsing.
Common tenant categories include:
- Hardware and building supplies (such as Bunnings)
- Furniture retailers and homewares specialists
- Electrical and whitegoods outlets
- Garden and outdoor living stores
- Flooring and carpeting showrooms
These centres offer defensive income characteristics through lower tenant turnover compared to specialty retail formats. Anchor tenants such as Bunnings provide strong covenant quality and typically commit to longer lease terms, reducing vacancy risk for property owners. The bulky goods format also requires less intensive property management compared to high-turnover retail environments.
Strategic Rationale for Centuria
Portfolio Expansion
The acquisition positions Centuria Capital to broaden its retail property exposure through a quality asset in an established Melbourne retail catchment. The Chadstone location benefits from strong demographic fundamentals and proximity to one of Australia’s premier retail destinations in the Chadstone Shopping Centre precinct.
The sales process, which attracted compelling offers from several national investors, validates both the asset quality and Centuria’s capital allocation discipline. Successfully securing the property demonstrates the group’s ability to source and execute transactions in contested market conditions.
Income Profile
The extended Bunnings lease through to July 2030 provides approximately four years of secured rental income from a blue-chip tenant, offering income visibility for CNI shareholders. Bunnings’ commitment to the site, demonstrated through the lease extension, suggests confidence in the location’s ongoing retail viability.
For context, BWP Trust achieved a realised internal rate of return of 15.21% on the asset since acquiring it for $72.5 million in 2024 as part of the Newmark portfolio acquisition. This performance metric indicates the property has delivered strong returns under previous ownership, supporting the case for continued value generation.
“The transaction demonstrates BWP’s ability to leverage its asset management capability by extending the property’s weighted average lease expiry to maximise asset value,” said Mark Scatena, Managing Director of BWP Management Limited.
The statement from BWP’s management provides third-party validation of the asset’s quality and the value-add potential realised through active lease management. The divestment is considered to be in the best interests of BWP securityholders and reflects BWP’s strategic focus on portfolio renewal.
Settlement Timeline and Next Steps
The transaction follows a structured timeline providing both parties with capital management flexibility:
- Contract executed: 23 January 2026
- Settlement expected: June 2026
- Bunnings lease secured: to July 2030
The extended settlement period to June 2026 allows Centuria to optimise funding arrangements whilst enabling BWP to maintain its FY2026 distribution guidance. BWP has indicated divestment proceeds will initially be applied to reduce drawn debt, consistent with its portfolio renewal strategy.
BWP’s original acquisition cost of $72.5 million in 2024, compared to the current sale price of $86.025 million, reflects both capital growth and the value creation achieved through proactive asset management, particularly the Bunnings lease extension.
Investment Thesis
The Centuria Capital Chadstone Homemaker Acquisition represents disciplined capital deployment into a quality retail asset with defensive income characteristics. For CNI shareholders, several factors support the investment rationale:
The property’s location in Chadstone, within an established retail precinct, provides geographic diversification and exposure to Melbourne’s south-eastern growth corridor. The secured Bunnings tenancy through 2030 offers income stability backed by one of Australia’s strongest retail covenants, reducing near-term leasing risk.
Centuria’s success in securing the property during a competitive process demonstrates effective capital allocation capabilities and market positioning. The willingness to pay a modest 1.1% premium to fair value suggests confidence in the asset’s income profile and potential for value enhancement, rather than opportunistic distressed buying.
The extended settlement timeline provides operational flexibility whilst the secured lease term offers immediate income contribution post-settlement. For a diversified property group such as Centuria Capital, the addition strengthens retail exposure through a large-format asset class that typically exhibits lower volatility than traditional shopping centre investments.
Want More Real Estate & REIT Analysis?
The Centuria Capital Chadstone acquisition demonstrates the type of strategic property transactions shaping Australia’s commercial real estate sector. For investors tracking ASX-listed REITs, property groups, and financial services companies, staying informed on these developments is essential for portfolio positioning.
StockWire X delivers FREE Big News Blasts covering breaking announcements and comprehensive analysis across non-resource ASX sectors including Real Estate, Financial Services, Healthcare, Technology, and Industrials. Trusted by over 20,000+ active subscribers, these alerts provide the timely intelligence needed to identify opportunities before the broader market reacts. Click the “Free Alerts” button in the menu to join investors already receiving daily sector updates and deep-dive analysis on ASX movers.