The Lowy family has re-entered the large-scale retail property market by backing a $440 million acquisition of Woodgrove Shopping Centre in Melbourne’s west through Assembly Funds Management, in partnership with global real estate investor PGIM.

The deal marks Assembly’s largest retail investment to date and signals growing momentum in Australia’s mall sector as institutional owners continue to offload major centres to private fund managers and syndicates.

The 27-hectare site in Melton, which generates more than $520 million in annual sale, is home to tenants including Coles, Woolworths, Kmart, Aldi and Reading Cinemas.

Assembly, founded in 2019 by former Westfield executive Michael Gutman with backing from the Lowy Family Group and investment firm Alceon, will hold a majority stake in the centre.

PGIM Real Estate, the world’s third-largest real estate investment manager, is taking a minority position.

The acquisition is being made via Assembly’s diversified fund series, which is set to launch a new equity raise, and a new syndicate of high-net-worth investors.

The sale was brokered by JLL and Colliers and is being seen as a milestone transaction for the retail sector. It is the first full-controlling interest sale of a Victorian regional shopping centre above $400 million in more than 20 years.

Woodgrove offers long-term development potential in one of Melbourne’s fastest growing catchments.

Originally acquired by QIC in 1997, the centre has undergone three major expansions and remains the dominant retail destination in the region, with no comparable centres planned nearby. The site could support an additional 30,000 square metres of development.