David Jones tipped to sell flagship stores
Prime commercial real estate in the heart of Melbourne and Sydney could be up for sale, after David ...
Prime commercial real estate in the heart of Melbourne and Sydney could be up for sale, after David Jones revealed a slump in revenue has forced the company to consider selling some of its biggest assets.
The four central CBD stores are estimated to be worth $612 million and are likely to attract immediate interest from high-end property investors.
According to a Fairfax Media report today (September 19), David Jones is considering the sale of its Sydney Elizabeth and Market Street stores, as well as its Bourke Street outlet in Melbourne.
With a combined floor space of 85,000 sq m, the outlets could bring $39 million in rent each year - igniting interest among buyers, with the sought after Sydney and Melbourne locations producing high returns for investors.
The potential asset sale "reflects the difficult trading environment during the year as well as the investment we have made in the second half of 2012 implementing our Future Strategic Direction Plan," David Jones chief executive Paul Zahra said.
It is not the first time the department store has liquidated its assets - in 2006 David Jones bought back its stores for $362 million after signing ownership papers over.