The Vicinity Centres-managed Perth’s Midland Gate has sold for a less-than-expected figure below $500 million to Hong Kong’s PAG, the private equity player that acquired Dexus’ 44 Market St office tower at a 17.2 per cent discount, in a sign of further discounts to come for regional shopping centres.

The owners of Midland Gate in Perth’s fast-growing north-east had been seeking at least $500 million before reaching an agreement for it to be sold, according to sources familiar with the deal.