MA Financial Buys Half of Melbourne Mall for $233M
MA Financial acquired a 50% stake in The Glen shopping centre in Melbourne for A$327.5 million and launched a new large format retail fund targeting over
MA Financial has purchased a 50 percent stake in The Glen shopping centre in suburban Melbourne for A$327.5 million (US$233.4 million). The Sydney-based asset manager also announced the launch of a new large format retail fund aiming to build a portfolio worth more than A$500 million.
MA Financial bought its half-interest in the mall, located about 26 kilometres from central Melbourne, from the privately held Perron Group. The transaction implies a passing yield of approximately 7 percent and is expected to be finalized before the end of 2026. According to the firm's co-head of core real estate, Chris Lock, this was a rare chance to buy into a large, high-performing centre in one of Melbourne's most affluent areas.
The Glen Shopping Centre
The Glen is a two-level mall anchored by major tenants including Target, Uniqlo, and David Jones, along with supermarkets ALDI, Coles, and Woolworths. Vicinity Centres owns the remaining 50 percent of the property. The centre features an outdoor dining precinct and over 205 specialty stores.
The asset maintains a 99 percent occupancy rate. Key metrics for the property are as follows:
| Metric | Figure |
|---|---|
| Gross Lettable Area | 76,488 square metres (823,310 square feet) |
| Annual Visitor Count | 14.9 million |
| Opening Year | 1967 |
| Recent Redevelopment Cost | A$430 million (completed 2020) |
Originally opened in 1967, the centre underwent a A$430 million redevelopment finished in 2020. A separate A$450 million residential precinct called Sky Garden was built above the mall by Golden Age Group.
Market Context and Fund Launch
Simon Rooney of CBRE Asia Pacific, who brokered the off-market deal, stated the transaction provided a strategic divestment opportunity. He noted investor sentiment is turning positive towards Melbourne, with opportunistic buyers now willing to invest. Rooney said Australia's retail sector leads commercial real estate investment, with over A$4.5 billion in regional shopping centre deals recorded this year.
The newly launched MA Large Format Retail Fund will be seeded with the Eastern Creek Quarter Large Format Retail Centre (ECQ XL) in Western Sydney, which MA Financial recently purchased. The firm is seeking to raise an initial A$28 million to fund that acquisition.
Chris Lock said the fund launch reflects confidence in structural tailwinds for Australian retail real estate, citing population growth and constrained supply. MA Financial cited CBRE data showing vacancy rates for large format retail assets have tightened to 2.8 percent, with market rents up 21 percent since 2020. The firm added that expiring leases are resetting at 6 to 8 percent above passing rent.
Expanding Retail Portfolio
This acquisition continues MA Financial's aggressive expansion in retail since it bought specialist IP Generation last year. Recent purchases include the Taigum Square Shopping Centre in Brisbane and the ECQ XL in Sydney for a combined A$170 million. Julian Biggins, MA Financial's joint chief executive, said following the settlement of recent deals, the firm will have nearly A$5 billion in retail real estate assets within its funds.
MA Financial stated it has acquired A$500 million in retail assets in the second half of this year and is in advanced due diligence on two further assets for the new fund. The firm, which oversees A$15.5 billion in assets, has been one of the most active acquirers of retail properties in Australia this year alongside Vicinity Centres.
