Flagship David Jones Melbourne store sold
Two major retail investment deals mooted last year have been formalised this month.
In Melbourne, Woolworths Holdings Limited is collecting $223.5 million for the flagship David Jones store, formerly the Buckley & Nunn building, c1910, spreading just over an acre on the Bourke Street Mall.
IP Generation is the buyer; led by Chris Lock, the fund manager and investor called for backers late last year when the transaction was first revealed.
The 25,000 square metre asset will be held in the IPG Special Situations Income Fund with a half stake of Cranbourne Park, acquired late last year, promising a starting, high, nine per cent annual distribution yield.
Woolworths quits DJs in the red
South Africa based WHL acquired 294-312 Bourke St with its $2.1 billion buy-out of the David Jones business in 2014 (the retailer has occupied since 1982).
Two years later it shed the Market St, Sydney, building. Cbus and SCentre were the buyers for $360m. A revamp is now underway.
Just over four years ago meanwhile, WHL divested the Melbourne menswear store – at 299 Bourke St, across the road from the flagship store – with imminent vacant possession, raising $121m.
Also in 2020, it sold the Elizabeth St, Sydney, outlet with a leaseback, collecting $510m.
Three years ago, in a surprise move, WHL sold the David Jones business to Anchorage Capital for c$100m but retained 294-312 Bourke St, which is leased to the retailer until about 2039 (story continues below).
Following settlement, IP Generation will manage assets worth over $2 billion.
Hines, Haben settle $900m Sydney mall
Meanwhile, US property investment house Hines, with local outfit, Haben, have settled on the $900m purchase of Sydney’s Westpoint Blacktown.
The deal with QIC was reported last June.
The landmark shopping centre is Hines’ maiden in the Asia Pacific; it tipped in the most ($260m), followed by Haben ($210m), with the balance collected late last year from private and wholesale backers.
With 104,000 sqm on nine hectares in New South Wales’ largest and fastest growing municipality, the asset was marketed for its significant development upside.
QIC held 34 years.
Subscribe to our newsletter at the bottom of this page.
