Blackstone is poised to exit Australia’s retail property sector, with the global investment giant close to selling its final major shopping centre asset in the country.

The US private equity firm is in advanced talks to offload Greensborough Plaza in Melbourne’s northeast for more than $350 million, according to The Australian.

Growthpoint Properties Australia’s investment arm is understood to be the likely buyer, although neither party nor the sales agents have confirmed the deal.

If completed, the sale would mark the end of Blackstone’s decade-long presence in Australian retail property, which began in 2014.

The company had previously planned a multibillion-dollar public listing of its shopping centre portfolio, but that strategy was abandoned amid the rapid rise of e-commerce and later disruptions caused by the Covid-19 pandemic.

The deal comes as investor appetite for retail property rebounds. While office assets continue to struggle with high vacancy rates and changing workplace trends, shopping centres – particularly those focused on convenience retail – are delivering stronger returns.

The market has shifted significantly, with both smaller investment firms and large institutions re-entering the sector. Superannuation funds and major property groups are now competing for large-scale retail assets, attracted by stable income streams and redevelopment potential.

Greensborough Plaza, located about 17 kilometres from Melbourne’s CBD, spans more than 59,000 square metres and is anchored by tenants including Coles, Aldi, Kmart, Target and Hoyts Cinema. The site also offers potential for future mixed-use development.