Over the past year, one recurring theme has emerged in our conversations with clients: the market is not collapsing, but uncertainty remains elevated.
In 2025, Australia is operating in an environment of still-high interest rates, increasingly polarised consumer behaviour, and mounting uncertainty on the development side. This is not a year for intuition-driven bets. Yet precisely because of this backdrop, the market has delivered a very clear signal: capital with genuine scale and long-term patience has chosen to express its conviction through mergers and acquisitions.
When we step back and examine the major retail M&A transactions completed in Australia during 2025—spanning pharmacies, department stores, shopping centres, quick-service food and specialty retail—a coherent picture begins to emerge. These are real, cross-sector transactions involving committed capital, and together they offer far more insight into the 2026 outlook than any macro forecast.
1. A frequently overlooked reality: patient capital never left the market
In 2025, Chemist Warehouse and Sigma Healthcare completed a merger valued at close to AUD 30 billion. This was not a simple exercise in scale, but a strategic integration of retail, wholesale distribution and national logistics into a single long-term operating platform.
From a commercial property perspective, moves like this are about securing operational stability for the next 10 to 20 years. For landlords, this translates into higher standards rather than lower ones: stronger site selection discipline, longer lease commitments and a greater focus on sustainable, high-performing locations.
2. Department stores and apparel are choosing acquisition over expansion
In early 2025, Myer acquired several established brands from Premier Investments for AUD 864 million. Rather than expanding store count, Myer opted to acquire proven brands with existing networks and demonstrated sales performance.
The logic is straightforward. In a period of consumption uncertainty, dependable cash flow matters more than growth narratives. For commercial real estate, this reinforces the value of assets that can support mature, well-established retailers with resilient operating models.
3. Shopping centres are not “recovering”; they were materially mispriced
2025 saw several highly instructive shopping centre transactions.
Logan Hyperdome in Queensland was acquired for AUD 678.7 million, setting a record for a regional centre in the state. Shortly thereafter, Top Ryde City Shopping Centre in Sydney changed hands for AUD 525 million.
These are not concept-driven assets. They are everyday, needs-based retail centres with clear anchor tenants, stable lease structures and highly predictable cash flows. Investors were not positioning for an economic rebound; they were using asset quality to offset cyclical uncertainty.
4. Institutional capital is, in reality, highly conservative
Throughout 2025, groups such as Dexus and Charter Hall accelerated their exposure to core retail assets.
In July 2025, Scentre Group sold a 25 percent interest in Westfield Chermside in Brisbane to Dexus for AUD 683 million, while retaining management, leasing and development control. This structure highlights a mature separation between capital ownership and operational expertise.
Around the same time, Scentre Group sold a 19.9 percent stake in Westfield Sydney to Australian Retirement Trust for AUD 864 million.
Charter Hall was equally active, acquiring six Bunnings-anchored assets across New South Wales, Queensland and Victoria for AUD 290 million, alongside multiple shopping centre purchases including Burwood One in Melbourne, Southport Park and Corio Village. Market reports indicate further negotiations for regional retail assets valued around AUD 250 million.
Across all of these transactions, the objective is consistent: minimising uncertainty. Capital increasingly prefers exposure at the equity level while leaving operations in the hands of best-in-class managers.
5. Quick-service food and liquor assets as the end point of yield compression
Single-tenant assets leased to operators such as KFC, McDonald’s, Hungry Jack’s and Guzman y Gomez continue to transact at increasingly compressed yields.
Dan Murphy’s in Malvern sold for AUD 21.1 million at the tightest yield the brand has recorded in five years.
These assets are no longer about chasing high returns. They function as capital parking zones—prioritising capital preservation and certainty over upside.
6. Specialty retail is emerging as a portfolio stabiliser
Specialty retailers such as 99 Bikes and The Good Guys have gained increased investor attention throughout 2025.
A portfolio of eight 99 Bikes stores sold for AUD 17.2 million at a blended yield of approximately 5.26 percent. Single-store transactions for The Good Guys ranged between AUD 5 million and AUD 30 million.
These assets are modest in scale but strong in logic. They serve clearly defined customer segments, operate proven business models and offer steady demand—qualities well suited to a more cautious investment cycle.
99 Bikes was founded by Matt Turner, with the support of his father, Flight Centre founder and entrepreneur Graham “Skroo” Turner.
Cornerstone Assets’ view
When viewed collectively, the M&A activity of 2025 delivers a clear message.
Over the next five to ten years, the assets most worth holding are not concept-driven or speculative retail properties, but those defined by:
• strong brand backing
• verifiable cash flow
• long-term lease structures
• the ability to perform consistently across cycles
These transactions are not isolated events. They are signals. And they are already shaping the retail asset landscape heading into 2026.
