M&G Real Estate, the real estate fund management arm of M&G Investments, has bought a Melbourne retail property asset for more than AUD220m (€153m).

The Casey’s Centre was sold by the Scentre Group.

According to sources, the off-market deal reflected a 5.25% yield, low for a shopping centre sale in Australia.

Charter Hall Property Group and superannuation industry fund manager ISPT were also bidding for the asset, it is understood.

The asset reopened in March after a AUD155m renovation.

M&G Real Estate has a partnership with Scentre through a 25% stake in Melbourne’s Westfield Doncaster Shopping centre.

The fund is overweight Australia because it has been able to access assets, according to sources.

Sources said that, in addition to Japan, Australia is a key destination for M&G Real Estate’s Core Asia Fund.

M&G Real Estate purchased a retail asset and a mixed portfolio of residential real estate in Japan in September for JPY13.1bn (€107m).

In October, the manager invested KRW158bn ($141m) in a South Korean retail asset, the Upsquare mall in Ulsan, for the same strategy.

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