A fund backed by the Lowy Family Group has sold the Coburns suburban mall in Melton West for $49 million, reflecting strong investor interest in well-located retail properties. The transaction was facilitated by Nick Willis of JLL, who indicated the sale achieved a 5.5 percent initial yield.
Coburns, situated within the Woodgrove precinct, was initially acquired in September as a separately titled asset within AFM funds and PGIM’s broader purchase of the Woodgrove Shopping Centre. The Woolworths-anchored centre features approximately 68,459 square meters of gross lettable area, 349 car spaces, specialty retail stores, and two adjacent pad sites. The sale marks a milestone in the collaboration between fund manager PGIM and AFM, which focuses on acquiring high-quality retail assets with resilient income streams and growth potential through active asset management.
Following the Woodgrove acquisition in 2025, the partnership expanded its portfolio by jointly acquiring EdSquare Town Center in southwest Sydney in July 2026. AFM was established in 2019 as a joint venture involving the Lowy Family Group, former Westfield president Michael Gutman, and financial firm Alecon. Since its inception, AFM has grown to oversee $1.2 billion in real estate assets. The Lowy Family Group remains a key investor and shareholder, contributing at least $75 million to AFM’s initial fund and supporting its broader ventures. Steven Lowy, principal of the Lowy Family Group, has described the partnership as a significant strategic initiative following the group’s exit from the Westfield shopping centre business in 2019.
Tim Meurer, AFM’s chief investment officer, noted that the market currently offers “significant liquidity” for tightly held neighbourhood retail assets, and that the sale delivered a satisfactory outcome for investors in the ADFPI and 2 funds, as well as AWT vehicles, alongside institutional partners. Meurer highlighted the company’s ongoing commitment to acquiring strategically positioned retail centres that can benefit from their focused asset management approach.
Looking forward, AFM plans to continue pursuing opportunities not only in retail but also in sectors showing steady growth, such as residential living and seniors living. Meurer also pointed to the challenges facing private credit markets, where liquidity constraints have become increasingly prevalent amid volatility and gate restrictions on redemptions. In this context, AFM is reopening its ADFP2 fund to new investors, aiming to capitalize on shifting capital market dynamics.
Steve Bullock, head of real estate at PGIM Australia, said the Coburns sale “reflects the depth of demand for well-located neighbourhood retail assets.” He added that as the partnership with AFM grows, they remain focused on expanding their retail portfolio and identifying opportunities that support long-term value creation for investors.