Private equity giant Blackstone Group has called off the sale of its A$3.5 billion ($2.8 billion) Australian shopping mall portfolio, a source said, as the looming arrival of Amazon.com spooks buyers of bricks-and-mortar stores.

With no interest in the entire 10-mall package, the cancelled sale is also the latest sign of stress in Australia’s east-coast real estate market, where population growth and booming property prices have underpinned landlords’ profits for years.

Blackstone, the world’s biggest alternative asset manager, walked away from the sale last week and will renovate the malls instead, a source with direct knowledge of the matter told Reuters on Tuesday.

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