Lendlease Strikes $900m Deal for Central Coast Retail Centre
One of the largest single-level shopping centres in the southern hemisphere is changing hands for $900 million.
Erina Fair, which opened in 1987, has more than 300 specialty stores as well as major anchors including Myer, Kmart and Woolworths.
Lendlease is understood to have struck a deal with Melbourne-based syndicator Fawkner Property for the centre, on the NSW Central Coast, about 85km north of the Sydney CBD.
Erina Fair spans about 113,000sq m and is the region’s dominant shopping centre.
The asset is part of the Australian Prime Property Fund (APPF) Retail vehicle, a $2.8-billion fund that is part of Lendlease’s broader APPF platform.
The sale comes after Lendlease successfully defended a management challenge led by investors UniSuper and Hostplus, who wanted to install Mirvac as fund manager.
The sale, handled by CBRE’s Simon Rooney and JLL’s Nick Willis and Sam Hatcher, is expected to close at an investment yield of about 6.5 per cent, slightly above the asset’s current book value.
This will be the largest deal to date for Fawkner, more than doubling the size of its previous biggest acquisition.
Meanwhile, global contractor Multiplex has completed Vicinity Centres’ $300-million redevelopment of Chatswood Chase on Sydney’s North Shore.
New luxury retail, dining and food market hall components were part of the work, which added 20,000sq m, increasing the centre’s total floorspace to 84,000sq m over five levels. More than 100 retail tenancies have been added.
The redeveloped retail centre is targeting a 4-Star Green Star rating and 4.5 Star NABERS rating.
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