Image via Erina Fair
Lendlease has secured a buyer for the landmark Erina Fair shopping centre in a transaction worth around $900 million, marking one of the largest single-asset retail deals in recent years. According to The Australian Financial Review, the sale — still to be finalised — is set to fast-growing Melbourne-based syndicator Fawkner Property, providing Lendlease with a crucial reprieve amid mounting investor redemption pressures within its unlisted retail fund.
The asset forms part of the Australian Prime Property Fund (APPF) Retail, a $2.8 billion vehicle that sits under Lendlease’s broader $10 billion APPF platform. The sale follows Lendlease’s successful defence against a management challenge led by major investors Hostplus and UniSuper, which sought to replace it with Mirvac. That battle, which Lendlease ultimately won, reaffirmed the company’s control over its high-profile fund empire.
Despite this victory, industry insiders expect substantial withdrawal requests once the APPF Retail redemption window opens next month, potentially paving the way for a fund wind-up. The vehicle currently holds stakes in just five malls, including Erina Fair, which had already been on the market.
Situated on the NSW Central Coast, Erina Fair spans approximately 113,000 square metres of retail space and remains a dominant regional shopping destination. The deal underscores growing confidence in Australia’s retail property sector, which has rebounded strongly post-pandemic. Australia’s shopping centres are showing renewed resilience as foot traffic and sales momentum continue to improve.
The transaction, brokered by CBRE’s Simon Rooney and JLL’s Nick Willis and Sam Hatcher, is expected to close at an investment yield of around 6.5%, slightly above the asset’s current book value. A fundraising document from Fawkner Property reportedly values the deal at $895 million, reflecting a 22% discount from Erina Fair’s peak valuation, while offering investors a 7.25% initial distribution yield.
For Fawkner, led by Chris Garnaut, the acquisition marks its largest deal to date, more than doubling the size of its previous biggest purchase. The group is among a new wave of private syndicators, alongside Haben and IPG Generation (now part of MA Financial), that have capitalised on opportunities to acquire retail assets from major listed landlords at discounted prices.
The proposed sale adds to a growing list of high-profile mall transactions that highlight the generational transfer of ownership in the retail sector. Once finalised, the Erina Fair sale will not only bolster Fawkner’s portfolio but also signal a continued shift of prime retail assets into private hands, reshaping the ownership landscape of Australia’s shopping centre market.
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