Race For David Jones’ Coveted CBD Retail Spaces Heats Up
The race to secure two of David Jones’ coveted CBD retail spaces is heating up as more groups join the bidding war.
Up for sale is the retail giant’s Elizabeth Street store in Sydney, believed to be valued between $400 million and $450 million, and the Bourke Street store in Melbourne, expected to sell for between $200 million and $300 million.
As reported by The Australian, the competition for the Sydney store is especially fierce, with more names throwing their hat in the ring for the prized retail spot in the middle of the CBD.
Sydney investment house AsheMorgan is just one of the parties who have expressed interest, while Precision Group, which owns Adelaide Central Plaza, is also vying for the property.
A 15-year leaseback arrangement, with the potential to negotiate a 20-year term, is part of the deal.
It comes after David Jones’ South African parent, Woolworths Holdings, appointed an investment bank to review its ownership structure.
The retail chain revealed plans to reduce operations by 20 per cent, with 10 stores slated for closure across Australia and New Zealand.
The smaller ‘men’s store’ in Melbourne’s Bourke Street branch was the first to get the cut in July after selling for $121 million.
Woolworths Holdings announced David Jones dropped from a profit of $37 million in 2019 to a $33 million loss in 2020 due to the COVID-19 pandemic.