Fawkner Property has agreed to purchase the Erina Fair shopping centre, located on the Central Coast of New South Wales, for $895 million. This acquisition marks a significant milestone for the fast-expanding retail property group led by Chris Garnaut, reinforcing its position in Australia’s competitive shopping centre market.
The sale comes at a time when Australia Day celebrations are set to return to various Fawkner Property centres, many of which are situated outside major metropolitan areas. Erina Fair will play host to these national day festivities, aligning with Garnaut’s vision to revitalize community engagement at shopping venues.
Previously under the management of Lendlease, the Erina Fair complex changes ownership as confidence in the higher-end retail property market resurges. This transaction was formalized just before major institutional investors began to re-enter the sector after a period marked by financial pressures and a focus on debt reduction.
The acquisition was facilitated through an unlisted trust, supported by over $400 million in equity raised by Fawkner Property, which is also a significant investor in the deal. This follows a series of notable transactions in late 2023, including the Australian Retirement Trust‘s acquisition of a 19.9 percent stake in Westfield Sydney for $864 million and Dexus‘s increase to a 50 percent holding in Westfield Chermside through a $683 million purchase.
Erina Fair was sold by South Korea’s National Pension Service and the Lendlease-managed APPF Retail Fund. The APPF Retail Fund is currently under strain, as investors voted to wind it up, with approximately $2.4 billion in assets expected to be gradually sold. Recently, S&P Global downgraded the fund’s long-term credit rating to BBB- from BBB+, citing ongoing challenges in capital return.
Despite these hurdles, Lendlease representatives stated that the sale price for Erina Fair indicates strong demand for quality retail assets. A spokesperson indicated that this outcome provides a positive result for investors and reflects renewed optimism in the sector. Investor sentiment has notably improved since the lows experienced during the pandemic and the subsequent tightening of interest rates, which had previously hindered the APPF Retail Fund’s ability to fulfill redemption requests.
The transaction was brokered by CBRE representatives, including Simon Rooney, alongside JLL’s Nick Willis and Sam Hatcher. Rooney noted a significant rebound in investor interest for Australian retail assets, with total transaction volumes reaching $11.7 billion over the past year. Of this, $6.9 billion consisted of regional and major regional centres changing hands in 2025, driven by improving market conditions.
Willis described this acquisition as a landmark event for local retail property, emphasizing that Fawkner’s purchase represents the largest private syndication transaction across any asset class in Australia. He pointed to a resurgence of global interest in retail property, citing recent momentum in the US market and increased offshore participation in Australia.
The Erina Fair acquisition is Fawkner’s largest to date, pushing its assets under management beyond $5 billion. This positions the group among the top ten retail landlords in Australia and as the largest private retail fund manager in the country. Notably, the purchase price reflects a 22 percent discount compared to the centre’s previous peak valuation of $1.15 billion, marking the largest full-interest sale of a regional shopping centre in Australia in 15 years.
Erina Fair spans 100 acres and generates annual sales of approximately $814 million, placing it within the top 25 shopping centres in Australia. Grocery turnover at the centre exceeds $250 million annually, bolstered by high-performing stores such as Coles and Woolworths. Notable tenants include Kmart, H&M, Uniqlo, Big W, Myer, Hoyts, JB Hi-Fi, McDonald’s, KFC, and Rebel Sport. The centre boasts an impressive 99 percent occupancy rate, with the vendor providing full rental guarantees.
The property offers significant potential for future development, given that it occupies only about 26 percent of its total site area. The acquisition has been incorporated into Fawkner’s latest wholesale fund, which aims for a 7.25 percent annual distribution and overall returns exceeding 15 percent. The fund was oversubscribed, aided by Fawkner’s policy of not charging performance fees and investing alongside partners as the largest unitholder.
This deal continues Fawkner’s aggressive acquisition strategy, which has seen the group secure around $1.4 billion in shopping centres from Lendlease in recent years, as well as properties across New South Wales, Victoria, Western Australia, and Queensland. Fawkner has established a reputation for enhancing the performance of mature centres through streamlined management structures and proactive asset management.
