This article is from the Australian Property Journal archive
Coles Myer has confirmed it has received and is considering bids for purchase of the Myer business.
“The board is considering bids for the business in tandem with bids submitted for the purchase of the Myer Melbourne property.
“Once these bids have been considered in full, the Board will be in a position to finalise its determination of whether retention, sale or demerger of the business will create greatest value for shareholders,” the company said in a statement.
While the company did not disclose the list of prospective buyers, it is believed that the field has been narrowed down to four contenders.
It is believed that South African retailer Edgars Consolidated Stores, CVC Asia Pacific, Harvey Norman and the Newbridge Capital/Myer family consortium is in the running.
Coles Myer is expected to fetch at least $1 billion from the sale of the Myer stores, including the flagship store on Bourke and Lonsdale streets in Melbourne.
Meanwhile, Coles Myer has less than 20 days to exercise its first right of refusal over the 50% interest in the Highpoint Shopping Centre.
Late last month, General Property Trust agreed to buy Highpoint, the third largest retail centre in Australia behind Gandel’s Chadstone Shopping Centre and Sydney’s Warringah Mall.
The 50% interest of Highpoint is expected to fetch $500 million.
The sale is conditional upon Coles Myer – the largest tenant of the retail centre, not exercising its first right of refusal. However, property sources said Coles Myer is not interested in buying a stake in Highpoint.
By Adam Parsons
