Located 12km southeast of Newcastle's CBD, Lake Macquarie Square is anchored by Big W, Coles, and Woolworths, boasting an impressive moving annual turnover exceeding $160 million. In 2019 the asset underwent a significant $60 million development which combined Lake Macquarie Fair and Mount Hutton into the current centre. The property's high performance is underpinned by the strong population growth in its immediate catchment, 40% above the national average.

The shopping centre has been sold at a premium to Charter Hall’s book value underscoring the continued capital demand for the retail sector. The buyer has been revealed as one of the most active private investors of shopping centres in Australia, Revelop, who have over the last 24 months added 7 retail properties to their ever-growing portfolio. Their most recent string of deals includes Pemulwuy Marketplace, Stockland Balgowlah and Stanhope Village.

Nick Willis, Senior Director at JLL said “The sale underscores the ongoing demand for Sub-Regional Centres and reflects the increasingly positive sentiment surrounding retail globally. In 2024, Sub-Regional shopping centres emerged as the most traded retail sub-sector. However, 2025 is anticipated to see a limited availability of Sub-Regional assets for sale, particularly in metropolitan locations. This scarcity has prompted investors to expand their focus to other regional cities, as opportunities to acquire controlling stakes in Sub-Regional properties within Sydney's metropolitan area are seldom available.”

Charter Hall Retail CEO Ben Ellis said: “The sale of Lake Macquarie Square forms part of our ongoing curation strategy, which has seen us expand our exposure to Net Lease Convenience Retail, further enhancing the income growth potential and quality of our portfolio.” 

“CQR’s portfolio continues to deliver strong operational performance. Our unique blend of convenience shopping centre and convenience net lease assets provides an attractive income growth profile with lower capital commitments. We have been active during the half on both the acquisition and divestment front in our pursuit of maximising future income growth. Our significant investment in the ASX listed HPI, alongside our wholesale capital partner Hostplus, will enhance the overall portfolio’s income growth profile. We are progressing well towards our objective of delivering the highest organic property income and earnings growth from the convenience retail sector.” 

Mr Charbel Hazzouri from Revelop comments “The acquisition of Lake Macquarie is a strategic addition to our portfolio, connecting and providing great efficiencies for our development of Chisholm Village underway which is now underway.” 

Mr Anthony El-Hazouri from Revelop said “Like metropolitan Sydney the surrounding catchments in Newcastle and Wollongong are extremely tightly held from an ownership standpoint. The ability to acquire a high-quality sub-regional like Lake Macquarie from Charter Hall was an opportunity we have been searching for and we are excited to bring the asset into our portfolio.”

JLL’s Head of Retail Investments, Sam Hatcher said “The evolution of the investor landscape is expected to persist throughout 2025. Over the past five years, we've witnessed a significant shift in the ownership profile of sub-regional centres. While institutional investors traditionally dominated this sector, syndicators and privates have emerged as increasingly active buyers these assets. This cyclical pattern outlines the dynamic nature of commercial real estate investment and highlights the ongoing competition for quality assets in the sub-regional sector.”

The substantial gap between current rental rates and those required for new development feasibility in the Sub-Regional sector provides significant potential for rental growth. JLL’s analysis illustrates that rents would need to rise by approximately 40% before new construction becomes economically viable. Given the current environment, the irreplaceable nature of existing Sub-Regional assets will continue to constrain new supply in the near future.