This article is from the Australian Property Journal archive
The unitholders of Deutsche Retail Infrastructure Trust have approved David Jones’ proposal to unwind the sale and leaseback agreements of David Jones’ flagship Sydney and Melbourne CBD stores.
The unitholders approval follows an extensive process by David Jones to unwind its properties with the trust.
In December last year, David Jones agreed to pay $362 million in cash for the assets and $45 million to unwind the agreement.
In December 2000, David Jones entered into a 79-year agreement with Deutsche Bank AG.
The properties were sold to Deutsche Retail Infrastructure Trust on a sale and leaseback structure for $366 million.
Deutsche Retail Infrastructure Trust paid $244 million in cash for the property and as part of the agreement, undertook a significant $112 million refurbishment and redevelopment of the stores.
The transaction is due to complete on Friday of this week.
David Jones will provide an update relating to the transaction when it releases its FY06 results on September 27, 2006.
By Kathryn O’Meara
