Assembly Funds Management, backed by the Lowy family, and US investment manager PGIM Real Estate have sold a Melbourne shopping centre for $49 million.

The partnership has offloaded Coburns Central in Melton West to an unlisted fund managed by HMC Capital, led by property investor David Di Pilla, in a transaction that delivers a 5.5% initial yield.

The sale comes less than 18 months after Assembly and PGIM acquired the centre as part of a broader $440.5 million property transaction that involved neighbouring Woodgrove Shopping Centre as well as other assets, purchased from Queensland Investment Corporation in 2025.

The 2.03-hectare Coburns Central site has approximately 6,845 square metres of lettable retail space. The neighbourhood centre is anchored by Woolworths and includes specialty retailers, a mini-major tenant and two adjoining pad sites occupied by an Ampol service station and Hungry Jack’s.The property also has 349 car parking spaces

The sale was brokered by agents from Stonebridge Property Group and JLL after expressions-of-interest were welcomed. It was a competitive sale with 13 offers reportedly received, reflecting the strong demand for established retail properties with reliable rental income. 

Assembly Funds Management chief investment officer Tim Meurer said the transaction demonstrated the depth of liquidity available for tightly held neighbourhood shopping centres.

He said the result delivered a solid outcome for investors across the firm’s ADPF1 and ADPF2 funds and its AWT investment vehicles, alongside institutional partners.

Mr Meurer said the transaction reinforced the group’s strategy of acquiring strategically located retail centres with opportunities to increase value through active asset management.

PGIM’s head of Australian real estate, Steve Bulloch, said the sale reflected demand for well-located neighbourhood retail properties and the partnership’s intention to expand its retail investment platform.

The two groups continue to own the larger Woodgrove Shopping Centre in Melton, which has approximately 53,372 square metres of lettable space across a site of about 25 hectares, with more than 2,000 car parking spaces.

The partnership has also expanded its retail holdings through the joint acquisition of Ed. Square Town Centre in south-west Sydney in July.

The latest transaction comes amid a broader wave of investments in shopping centres across Victoria. Other recent deals include the Commonwealth Superannuation Corporation’s $480 million acquisition of a 50% stake in Watergardens Shopping Centre and JY Group’s purchase of a 50% interest in Westfield Airport West for $190 million.