Fawkner Property has finalized an agreement to acquire the Erina Fair shopping centre on the Central Coast of New South Wales for $895 million. This acquisition marks a significant milestone for the retail property group, further establishing its influence in Australia’s shopping centre sector. The deal comes as Australia Day celebrations are set to return across Fawkner’s properties, which predominantly serve regions outside major urban capitals.
The Erina Fair shopping centre, previously managed by Lendlease, changes ownership at a time when confidence in the retail property market is rebounding. This transaction took place just before large institutional investors resumed activity in the sector, following a phase characterized by distressed sales driven by financial pressures on vendors.
The acquisition was executed through an unlisted trust supported by over $400 million in equity raised by Fawkner, which is also a significant investor in the deal. This follows a series of substantial transactions in late 2022, including the Australian Retirement Trust purchasing a 19.9 percent stake in Westfield Sydney for $864 million and Dexus increasing its shareholding in Westfield Chermside to 50 percent for $683 million.
The sale of Erina Fair was completed by the National Pension Service of South Korea and the APPF Retail fund, managed by Lendlease. The APPF Retail fund is currently under pressure, as investors voted to wind it down, with approximately $2.4 billion in remaining assets expected to be sold progressively. Recently, S&P Global downgraded APPF Retail’s long-term credit rating to BBB- from BBB+, citing difficulties in returning capital to investors. Despite these challenges, the ratings agency noted the potential for orderly asset disposals and a strengthened balance sheet as sales progress.
Lendlease representatives highlighted that the sale price for Erina Fair reflects strong demand for premium retail assets. A spokesperson stated that the successful transaction signals renewed investor confidence in the sector, which has improved since the decline experienced during the pandemic and ensuing interest rate hikes.
Investor interest in Australian retail properties has surged, according to CBRE’s Simon Rooney, with total transaction volumes reaching $11.7 billion over the past year. Of this, $6.9 billion involved regional and major regional centres transacted in 2025. Both domestic and international capital is flowing back into the sector, driven by improving market conditions.
JLL’s Nick Willis noted that Fawkner’s purchase is significant, representing the largest private syndication transaction across any asset class in Australia. He emphasized the growing global interest in retail properties, citing momentum from recent high-profile international transactions and increased offshore investment in the Australian market.
The acquisition of Erina Fair represents Fawkner’s largest investment to date, elevating its assets under management beyond $5 billion. This achievement positions Fawkner among the top ten retail landlords in Australia and establishes it as the largest private retail fund manager in the country.
The purchase price of $895 million is approximately 22 percent lower than the centre’s peak valuation of $1.15 billion, marking the largest full-interest sale of a regional shopping centre in Australia in the past 15 years. It is also noted as the largest retail asset ever sold into private ownership in New South Wales.
Erina Fair, located on a 100-acre site, generates annual sales of around $814 million, ranking it among the top 25 shopping centres in Australia. The centre enjoys a grocery turnover exceeding $250 million, supported by strong performances from major retailers including Coles and Woolworths. Annual sales figures show Woolworths at approximately $99 million, Coles at about $95 million, Aldi at $25 million, and Harris Farm at $35 million, while significant tenants also include Kmart, H&M, Uniqlo, Big W, Myer, Hoyts, JB Hi-Fi, McDonald’s, KFC, and Rebel Sport.
The shopping centre boasts an occupancy rate of 99 percent, with the vendor offering full rental guarantees. With only about 26 percent site coverage, Erina Fair presents substantial opportunities for future development and enhancement.
The asset has been incorporated into Fawkner’s latest wholesale fund, which aims for a 7.25 percent annual distribution and total returns exceeding 15 percent. The fund was oversubscribed, aided by Fawkner’s policy of imposing no performance fees and investing alongside its partners as the largest unitholder.
This acquisition continues Fawkner’s trend of expansion, having acquired approximately $1.4 billion worth of shopping centres from Lendlease in recent years, alongside other assets throughout New South Wales, Victoria, Western Australia, and Queensland. The group has built a reputation for enhancing the performance of established centres by streamlining management structures and actively managing assets once acquired.
