QIC offloads Victorian shopping centre for $440m

The Lowy Family Group-backed Assembly Funds Management (AFM) has struck a deal with PGIM Real Estate to jointly acquire QIC's Woodgrove Shopping Centre in Melton, Victoria for $440 million.

The single-level centre, spanning over 27 hectares of land in the west of Victoria, generates over $520 million in moving annual total (MAT) sales and contains nine major, nine mini major and 142 specialty stores.

QIC real estate director of funds management Declan Walsh said the site has evolved into a "first-choice" retail destination through QIC's prolonged engagement; the asset owner has had the centre on its books for more than three decades.

"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," Walsh said.

AFM chief investment officer Tim Meurer said the acquisition presents a "rare" investment opportunity.

"The opportunity to acquire centres such as this, which are already delivering strong sales over $520 million, is very limited at a time when the cost of replicating them is unviable," Meurer said.

"Together with its 27 hectares of land it presents multiple opportunities to add value and deliver strong distributions during our investment period.

"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."

Meanwhile, PGIM Real Estate managing director and head of Australia Steve Bulloch said: "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."

"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."

The transaction is expected to close in Q3 2025.