This article is from the Australian Property Journal archive
DESPITE a sales slump in department stores sector, David Jones is forging ahead with its coast to coast expansions plans.
DJs yesterday unveiled three new store locations and the refurbishment of a further three at Pacific Fair, Queensland; Macquarie, New South Wales; Whitford, Western Australia; Kotara, NSW; Marion, South Australia; and Karrinyup, Western Australia.
The upmarket retailer has entered into a multi-faceted agreement Westfield, AMP Capital Investors, Dexus Property Group and Lend Lease’s Australian Prime Property Fund to deliver 40,000 sqm of additional selling space (10% increase); $200 million of additional sales (10% increase); and $26 million of extra store contribution (15% increase in department store EBIT).
The three new stores will be located at AMP Capital Shopping Centres’ and WestArt Trust owned Pacific Fair on the Gold Coast opening in late 2011 and Macquarie Centre, Sydney which will open in mid 2011; and Westfield’s Whitford shopping centre slated for early 2012.
DJs general manager of retail development Antony Karp said each of these new stores are in high value locations and subject to 25 year leases on terms.
The Gold Coast City Council has approved a application for the $400 million redevelopment of the Pacific Fair centre earlier this year. The centre currently has 104,000 sqm and boasts a moving annual turnover of almost $628.3 million. Once completed it will have 145,000 sqm of space including a 14,500 sqm DJs store.
The Macquarie Centre is owned by funds managed by 60% AMP Capital Investors and 40% Westfield. The $300 million redevelopment DA is before the Ryde City Council. The centre currently has 96,500 sqm and has a moving annual turnover of $605.4 million. The centre is expected to expand to 127,500 sqm and will include a 14,000 sqm DJs store.
AMP Capital Shopping Centres acting managing director Bryan Hynes said the addition of David Jones also recognises the changing demographics of north-west Sydney and the Gold Coast which are demanding improved retail and leisure choices.
Finally Westfield and Dexus are planning a $200 million redevelopment of the Whitford Centre. The centre is the third largest in WA and attracts approximately eight million people per annum and generates $445 million in annual turnover and whilst it offers more than 270 specialty stores it does not have a department store offering which will be solved once DJs opens at 13,500 sqm store in 2012.
In addition, DJs will also refurbish three stores. Westfield is currently expanding the Kotara centre in the Hunter region from 43,700 sqm to 62,900 sqm and DJs will anchor the centre with a 15,350 sqm store – an increase of 2,900 sqm.
DJs will also refurbish its store at another Westfield owned asset, the Marion centre in SA and in WA, DJsa currently has a 9,500 sqm store in the Karrinyup centre which is owned 37.5% by Westfield and 62.5% by Unisuper and is managed by AMP.
Karp said the property agreement requires no additional debt funding to be provided by the retailer.
“All of the company’s spend for the new stores is projected to fall into FY11 & FY12 and will on average only utilise 30% of the Company’s $50m annual capex budget across those two years,” he concluded.
Australian Property Journal
