Stonebridge finish EOFY with $172.1M in final two months as freestanding retail emerges as favourable sector.

Stonebridge Property Group have recorded a strong end to FY25 End-of-Financial-Year (EOFY) with total transactions in May and June alone totalling $172.13 million. Investor appetite remains firmly focused on secure, income-generating assets with childcare, fuel & convenience, fast food, and freestanding retail leading the charge.

Stonebridge have released the following performance metrics since May 1, 2025:

Stand out sales highlight Stonebridge’s coverage across Australia:

Retail: Officeworks Subiaco (Perth) Sale Price $11.40M
Fast Food: Starbucks Kedron (Brisbane) Sale Price $5.20M, 4.65% Yield.
Childcare: Imagine Collingwood Park (Brisbane) Sale Price $10M, 5.08% Yield
Fuel: EG Keysborough (Melbourne) Sale Price $11.07M, 4.61% Yield.

As demonstrated by the final two months of transactions, the freestanding retail market is experiencing a growing incidence of interstate investment, with a notable share of transactions involving buyers acquiring assets outside their home state. This trend highlights an increasing nationalisation of retail investor activity. At the same time, capital flows are diversifying as traditional sector-aligned investors, including fuel and convenience purchasers, move into broader freestanding retail assets. Particularly those underpinned by non-discretionary spend — which continue to trade at compressed yields.

Yields remain competitive across the board, with fast food and fuel assets attracting strong bidding, driven by long-term leases, essential services, and tenant covenant strength.

Macroeconomic factors continue to provide confidence in the Childcare sector with $22.3 billion in forecasted revenue and more than $16 billion in annual federal funding support projected in 2025-26. NSW alone experienced a 76% uplift in transaction value year-on-year.

Preliminary data (to be release in Stonebridge’s FY2025 Market Update) suggests that FY25 is tracking toward a 15-20% increase in total transactional volume compared to FY24. It is anticipated that once Q4 data is fully captured, volumes for the final quarter will materially exceed those recorded in the corresponding period of FY24, reinforcing the market’s ongoing strength.

“Our national team has witnessed a significant shift of activity across the past 2-3 months, with the market gaining significant momentum. Quality commercial assets backed by resilient tenants and industries are becoming increasing liquid, as many buyers look to re-enter the market.” Said Michael Collins, Partner, Stonebridge Property Group.

“Stonebridge data indicates a recent firming of cap rates across the key freestanding sub-sectors of childcare, fuel & convenience, fast food and freestanding retail. Our ‘house view’, driven by the noticeable uptick of recent activity, is the likelihood of further yield compression as we begin FY26, whereby the ‘smart money’ has begun pricing in asset appreciation amidst a falling interest rate environment”. Added Tom Moreland, Partner, Stonebridge Property Group

For further details, please contact:

Tom Moreland

Partner
+61 408 072 822

Michael Collins

Partner
0404 023 204