One of Australia’s largest retail property shake-ups is underway as Lendlease’s Australian Prime Property Fund (APPF) Retail and South Korea’s National Pension Service (NPS) officially list their joint 100% stake in the Erina Fair shopping centre on NSW’s Central Coast.

The 113,000sqm super-regional centre – anchored by Myer, Kmart, Big W, Woolworths, Coles, Aldi, Hoyts and the Erina Ice Arena – is expected to fetch more than $850 million, with heavyweight buyers already circling.

Melbourne-based syndicator Fawkner, IP Generation (currently snapping up Top Ryde for over $500m) and Haben (backed by US investment giant Hines) are all tipped to be in contention.

Offshore capital, especially from Asia, is also eyeing the site, driven by its mixed-use development potential and a strategic location just outside Sydney.

Lendlease has appointed CBRE’s Simon Rooney and JLL’s Nick Willis and Sam Hatcher to manage the sale, which unifies the ownership and management rights for the first time.

The move comes amid rising retail property activity, driven by lower interest rates and improved consumer sentiment.

Erina Fair could become a flagship asset in the growing trend of private capital targeting retail centres, particularly those with land for future residential projects.

The site’s potential redevelopment is seen as timely, given the ongoing housing supply crunch in New South Wales.

For Lendlease, the sale is a critical step in stabilising its $10 billion APPF platform, which is under pressure following Mirvac’s bid to acquire its $2 billion industrial fund.

Retail property values remain below their pre-eCommerce boom highs, but investor appetite has returned.

Recent comparable deals include the $440 million sale of Woodgrove and a $385 million half-stake in Northland, both located in Melbourne.