Charter Hall acquires Chullora Marketplace for $145 million

Charter Hall has acquired Chullora Marketplace for $145 million through an off-market transaction led by JLL’s Nick Willis and Sam Hatcher.

Chullora Marketplace, located 14km southwest of the Sydney CBD, is triple-anchored by a Woolworths, Coles, and an Aldi, generating $168 million in annual turnover, $112 million of which is driven by the supermarket anchors. The property spans 5.8ha of an infill site, with 867 car parks.

The acquisition reflects a resurgence of institutional capital in the sector, driven by a resilient tenant mix, said Willis and Hatcher.

The purchase follows Charter Hall’s recent acquisitions of Corio Village and Glebe Village, indicating strong confidence in the sector’s potential and stability.

“To have the opportunity to acquire a land-rich centre positioned on almost 6ha of freehold land, and underpinned by a robust convenience mix within this proximity to the Sydney CBD, is almost non-existent anymore,” said Willis, who is executive director of JLL Australia and New Zealand.

“Further, the transaction highlights the continued shift in buyer profile, with the return of institutional capital emerging as net acquirers.”

“Globally, major capital sources are re-weighting toward retail after sustained strong performance,” added Hatcher, who is head of retail at JLL Australia and New Zealand.

“In Australia, nine consecutive quarters of positive leasing spreads highlight the return of rental growth.

“Year-to-date 2025 transaction data show a 30 per cent increase in average deal size compared to 2024 and a 31 per cent increase over the prior five-year average, reflecting growing institutional appetite for premium retail assets.”

The pair said there is a large potential for rental growth given the current disparity between existing retail rental rates and the economic rental rates needed to justify new developments.

Rents would need to increase by around 40 per cent to accommodate new constructions and as a result, the inherent value and limited availability of existing neighbourhood assets are expected to persist, continuing to restrict new supply in the near future, they concluded.