US-based PGIM Real Estate has acquired Woodgrove shopping centre in Melbourne for $440 million.

PGIM partnered with Australia’s Assemble Funds Management (AFM) to acquire the single-level shopping centre, which occupies 27ha in the suburb of Melton.

The centre generates over $520 million and features over 140 stores, including Coles, Woolworths, Aldi, Kmart, and a cinema. 

“Together with its 27ha of land it presents multiple opportunities to add value and deliver strong distributions during our investment period,” said Tim Meurer, CIO of AFM. 

“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,” said Meurer. 

The investment, brokered by JLL and Colliers, was made on behalf of PGIM’s Asia core strategy and marks its second partnership with AFM, following its co-funding of a retirement living platform last year. 

“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,” said PGIM’s MD and head of Australia, Steve Bulloch. 

“We remain very selective in the retail space, but this opportunity ticks a number of boxes for us, offering a solid existing cash flow, trading performance, as well as several opportunities for asset enhancement.”

Woodgrove has previously undergone three expansions, and the mall draws on a trade area population of 172,000, forecast to rise to over 290,000 by 2039, according to Colliers.