In a major retail property transaction, Assembly Funds Management (AFM) and PGIM Real Estate have announced the joint acquisition of Woodgrove Shopping Centre in Melton, Victoria, for $440 million.
Spanning 27 hectares in Melbourne’s rapidly growing western corridor, Woodgrove is a high-performing, single-level centre with more than $520 million in moving annual turnover (MAT). The centre features nine majors, nine mini majors, and 142 specialty retailers, anchored by Coles, two Woolworths stores, ALDI, Kmart, Big W, Harris Scarfe, Dan Murphy’s and Reading Cinemas.
AFM’s Chief Investment Officer Tim Meurer said the acquisition presented a rare opportunity to secure a 100% interest in a dominant retail asset within a booming catchment.
“The opportunity to acquire centres of this calibre, already delivering over $520 million in annual sales, is extremely limited — especially when replicating them at today’s costs is not viable,” said Meurer.
“With 27 hectares of land, the asset also offers multiple value-add opportunities and strong distribution potential for our investors.”
AFM is acquiring its share of the asset through its Diversified Fund Series — soon to open for a new equity raise — and via a newly formed high-net-worth syndicate.
PGIM Real Estate, acquiring its stake on behalf of its Asia Core strategy, sees the investment as a strategic addition to its retail portfolio.
“We remain highly selective in retail, but Woodgrove ticks all the boxes — strong existing cashflow, solid trading performance, and asset enhancement potential,” said Steve Bulloch, Managing Director and Head of Australia for PGIM Real Estate.
This marks the second collaboration between AFM and PGIM Real Estate, following their co-investment in a retirement living platform in early 2024.
QIC Real Estate, the vendor, has owned and managed the asset for 28 years. Declan Walsh, Director of Funds Management, said the transaction reflects QIC’s disciplined approach to value realisation.
“Under our stewardship, Woodgrove has become the retail destination of choice for Melbourne’s outer-west. This sale reflects both the strength of the asset and the current market’s appetite for quality retail,” said Walsh.
The transaction was brokered by JLL’s Nick Willis and Sam Hatcher, alongside Colliers’ Lachlan MacGillivray. Willis noted the deal attracted wide-ranging interest from domestic and offshore capital, signalling renewed investor confidence in Australian retail.
“Woodgrove was the first Victorian regional centre above $400 million to come to market with a full controlling interest in over two decades. The depth of bidding speaks to the global resurgence in retail investment,” said Willis.
Recent data supports the trend. According to Hatcher, Australia has now recorded nine consecutive quarters of positive leasing spreads, underscoring a return to rental growth.
“Institutional capital is re-entering the sector with conviction. Average deal size in 2025 is up 43% on 2024 and 49% higher than the five-year average,” he said. “This is driving increased buyer liquidity and competitive tension for scarce assets offering control.”
MacGillivray added that Woodgrove’s performance and dominant market share made it an exceptional acquisition.
“This is one of the highest-performing centres nationally in terms of market share among centres generating over $500 million in sales,” he said. “Its location in a metropolitan trade area projected to grow more than three times faster than Melbourne’s average — and with no new regional supply on the horizon — positions it for continued outperformance.”
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