This article is from the Australian Property Journal archive
THE circa $125 million sale of David Jones is reportedly nearing completion, and will exclude its Bourke Street Mall department store in Melbourne.
According to The Australian, private equity firm Anchorage Capital Partners could agree to the deal as early as this week, having been in exclusive due diligence for weeks.
South Africa-based Woolworths Holdings acquired David Jones in 2014 for $2.1 billion but has made major writedowns as the department store chain suffered amid retail headwinds such as online shopping, and more recently the impact of COVID.
Woolworths sold off the David Jones menswear store at 299 Bourke Street two years ago for $121 million, and retained, combined and reworked the offering at its larger store opposite, while following that up with the $510 million divestment of its Elizabeth Street store in Sydney.
In a similar move, that store had reopened at the end of 2019 year following a $200 million revamp resulting from David Jones selling its menswear building at 77 Market Street for $360 million in 2016 with intentions to overhaul the adjacent offering.
Woolworths could hold on to the remaining Bourke Street Mall store.
Shortly before a campaign was launched for 299 Bourke Street, Woolworths revealed it would slash David Jones floor space by 20% by 2026, including via negotiations with landlords that could include breaking of leases. David Jones has more than 40 stores across the country, many with long-term leases.
Allegro Funds had reportedly offered $400 million for David Jones earlier this year before slashing its offer in half after due diligence.
