David Jones moves on Bourke Street divestment

Proceeds from the proposed sale (industry sources estimate the property could fetch $150 million or more) will fund the refurbishment of David Jones’ flagship store on the opposite side of the mall at 310 Bourke Street.

David Jones has appointed CBRE’s Mark Wizel and Simon Rooney to broker the retail real estate. JACX property director Michael Jackson is providing transaction management services on behalf of David Jones.

On the southern side of Bourke Street mall, the six-storey retail building was mainly built in 1930 on the site of the original Coles book arcade.

It is fully occupied by David Jones, which is offering the property with a short-term lease back.

Mr Wizel said: “Generations of Australians have a strong affinity with Bourke Street mall and, in particular, the David Jones brand.

“The market will be watching with interest as to what the next chapter looks like for the David Jones menswear store, with a range of end uses possible under the current zoning and a strong backdrop of supporting economic drivers suiting retail, residential, accommodation and commercial office product.”

Mr Rooney said properties such as 299 Bourke Street were tightly held and rarely traded.

“The flexibility around the offering of the property will be a major drawcard for both domestic and international capital,” he said.

David Jones retail director Aaron Faraguna said the sale would allow the department store to focus on the refurbishment of 310 Bourke Street.

“This will see us deliver all our categories in a cohesive and premium offering under one roof for customers,” he said.