As it struggled to make revenue from David Jones, the firm shed its stores. It sold off the brand’s flagship Sydney premises to property giant Charter Hall in late 2020 for $510 million. During the same year, it had already offloaded the David Jones Menswear store on the south side of Bourke Street to fund manager Newmark Capital for $121 million.
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David Jones’ lease on its Melbourne building runs for another 18 years. Inside, the store covers 25,000 square metres, where the group trades luxury retail brands, cosmetics, homewares and clothing.
JLL agent Nick Willis, who facilitated the Bourke Street building’s sale with colleague Sam Hatcher, said few big-city retail stores, like the David Jones building in Melbourne, have been selling to investors. Sales are down 87 per cent from their 10-year average, he said.
But city retail vacancy rates had recovered, Willis said, and were now at a 5-year low of about 5 per cent, under the 10-year average.
IP Generation’s Chris Lock said the David Jones building would be combined with another recent acquisition, Cranbourne Park Shopping Centre, in an investment fund worth $350 million.
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