Dandenong Plaza has been reportedly sold for $145 million to private developer Ross Pelligra.
The price tag was well lower than the $197 million paid by MA Financial, managed by Armada, in 2015.
The Australian Financial Review reported that Mr Pelligra plans to invest up to $700 million into redeveloping the shopping centre with a mix of residential, offices, a hotel and retail.
Last year, he had taken over the former Ramada hotel nearby. It is being refurbished into a Holiday Inn.
Pelligra was contacted for comment.
