PGIM Real Estate has teamed up with Australian manager Assembly Funds Management (AFM), to acquire a shopping centre in Melbourne from Queensland Investment Corporation (QIC) for A$440m (€226m).
PGIM Real Estate is investing on behalf of its Asia core strategy to acquire the Woodgrove Shopping Centre, a 27-hectare, single-level shopping centre located in the western suburb of Melton.
Steve Bulloch, managing director and head of Australia for PGIM Real Estate, said: “Despite the challenges in recent years, PGIM Real Estate’s investment track record in the retail sector, both in Australia and more broadly across Asia, has been strong. We remain very selective in the retail space, but this opportunity ticks a number of boxes for us, offering a solid existing cashflow, trading performance, as well as several opportunities for asset enhancement.”
This transaction marks the second time AFM and PGIM Real Estate have partnered, having co-funded a retirement living platform in early 2024.
Tim Meurer, AFM’s chief investment officer, said the centre, which generates more than A$520m in moving annual total sales, is anchored by leading supermarket chains, among nine major, nine mini major and 142 speciality stores.
“Together with its 27 hectares of land it presents multiple opportunities to add value and deliver strong distributions during our investment period,” he said.
“AFM is acquiring its share of the asset on behalf of investors in its diversified fund series, which will shortly open for a new equity raise, and a new syndicate of high-net worth investors.”
QIC Real Estate director of funds management, Declan Walsh, said through 28 years of stewardship, QIC’s active management and development approach had seen Woodgrove evolve into the first-choice retail destination for the local area.
“Driving performance also means knowing when market conditions are conducive to realising value, and this excellent sale demonstrates QIC’s focus on meeting the objectives of our investors.”
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