Assembly Funds Management is set to expand its presence in Australia’s retail property sector with a proposed $248 million acquisition of Ed. Square Town Centre at Edmondson Park in Sydney’s rapidly growing south-west.

The investment firm, which has backing from the Lowy family and is led by former Westfield executive Michael Gutman, has steadily increased its exposure to large shopping centres as institutional investors continue to sell assets to reduce debt and rebalance portfolios.

The purchase follows Assembly’s move into larger retail assets last year when it partnered with US-based PGIM Real Estate to acquire Melbourne’s Woodgrove Shopping Centre for $440 million. PGIM is again supporting Assembly in the latest transaction, reinforcing the partnership’s strategy of investing in major retail destinations across Australia.

Ed. Square Town Centre was placed on the market by Frasers Property Australia earlier this year as the developer continues to redirect capital towards residential and commercial developments. The company has also sold Eastern Creek Quarter in western Sydney and Melbourne’s Burwood Brickworks Shopping Centre as part of its portfolio reshaping.

Located alongside Edmondson Park railway station, Ed. Square has established itself as a major retail, dining and entertainment destination since opening in 2021. The centre forms part of Frasers Property’s broader $1.5 billion mixed-use Ed. Square development, which combines residential, retail and commercial spaces within one precinct.

The shopping centre spans more than 24,500 square metres and includes 89 retailers, anchored by Coles, TK Maxx and Event Cinemas. It also features nine mini-major tenants, a wide range of specialty stores and almost 1,000 car parking spaces, serving one of Sydney’s fastest-growing residential corridors.

Strong population growth and increased consumer spending in south-west Sydney have contributed to improving sales performance since the centre opened, helping attract strong interest from both local and international investors during the sales campaign.

The proposed acquisition reflects continued confidence in Australia’s retail property market despite economic pressures including higher interest rates and rising business costs. Several high-profile shopping centre transactions have taken place this year, including the sale of a stake in Westfield Marion in Adelaide and Melbourne’s Greensborough Plaza.

Assembly believes the property’s transport links, growing customer catchment and mix of essential retail and entertainment tenants provide solid long-term investment potential. The firm also plans to apply its active asset management strategy to further enhance the centre’s performance over time.

For PGIM, one of the world’s largest real estate investment managers, the purchase aligns with its strategy of investing in well-located retail assets that are expected to benefit from long-term population growth and increasing demand for convenient shopping destinations.