Lendlease has struck a deal to sell Erina Fair shopping centre on the NSW Central Coast for around $900 million, marking one of the largest standalone retail transactions in Australia in over a decade.

The proposed buyer is fast-growing Melbourne syndicator Fawkner Property, which would make this its biggest acquisition to date.

The sale comes as Lendlease fends off mounting investor pressures within its $2.8 billion Australian Prime Property Fund (APPF) Retail, part of the group’s $10 billion APPF platform.

Earlier this month, Lendlease successfully defeated a high-profile attempt by superannuation giants Hostplus and UniSuper to replace it as fund manager, reaffirming control over its retail and industrial assets.

Erina Fair spans approximately 113,000 square metres, attracting 11 million visitors annually, with anchor tenants including Myer, Kmart, Big W, Woolworths, Coles, Ald, and Uniqlo.

The 42-hectare, land-rich site has scope for residential and mixed-use development, and its 98% occupancy underlines its continued appeal.

The transaction, brokered by CBRE and JLL, is expected to settle at an initial yield of around 6.5%, slightly above the asset’s current book value.

Fawkner’s documents indicate a forecast 7.25% distribution yield for investors and an internal rate of return exceeding 15% over five years.

Recent months have seen similar acquisitions, including stakes in Sydney and Brisbane centres, signalling the rise of private syndicators like Fawkner, Haben and IPG Generation, which are increasingly challenging the dominance of listed landlords.

Erina Fair’s sale highlights the ongoing evolution of Australia’s retail property market that has rebounded strongly post-pandemic and seen a resilience in foot traffic, sales and investor confidence.