The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
11
print
Print
RetailRenee McKeownThu 24 Sep 20

David Jones Cuts Floorspace, Sells Property

32a97f46-435e-4484-af39-842a7b48ddfc

David Jones’ parent company has received a number of offers on its remaining properties as the company looks to downsize and extinguish debt.

Johannesburg-listed Woolworths Holding Limited plan to drop its David Jones footprint by 20 per cent in the next two years as well as the food component of those stores.

The group is taking a “hard look” at its Australian real estate portfolio including remaining properties as well as rental agreements.

The company’s results were boosted by the sale of Bourke Street menswear building for $121 million to Newmark Capital.

Woolworths Holding Limited chief executive Roy Bagattini said they have received several non-binding indicative offers on their remaining stores and were also looking to reduce rental costs.

“We’re well into a process with the remaining properties in David Jones and are really encouraged by the strong level of interest we are seeing,” Bagattini said.

“Pivotal to our cost component is our real estate, the number of stores we have and the number of spaces we have.”

Related: Cbus, Scentre Unveil David Jones Transformation

▲ Newmark Capital purchased 299 Bourke Street Mall for $121 million and plan to refurbish the lower three levels for retail and the upper levels for offices.

Bagattini said they were looking to shift capital towards digital transformation, moving from larger malls to smaller more convenient stores and were taking lessons from the positive results seen their new Elizabeth Street store.

“Although some progress has been made our David Jones business has simply not transitioned fast enough, while it's arguable some of its challenges have been more structural there are several identified opportunities for performance,” Bagattini said.

“We are seeing a marked shift in the way people shop and want to engage.

“These trends have been accelerated and accentuated during covid and we anticipate they will endure into a post covid world.”

Group chief financial officer Reeza Isaccs said despite the difficult conditions they were very pleased with the the group has landed .

“David Jones traded through and performed reasonably in line with 2019 even after Asian tourism stopped, but one can see the decline post social distancing and restrictions on movement and the pickup subsequently helped by promotions and clearance,” Isaccs said.

In Australia retail turnover dropped 4.2 per cent in August compared to July however this was up by 6.9 per cent when comparing to last year according to the latest results by the Australian Bureau of Statistics.

RetailInternationalFinanceReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
The Gold Coast-based developer has put its foot on a South Brisbane site and plans a 28-storey residential play…
LATEST
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
4 Min
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
4 Min
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
3 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/offers-made-on-david-jones-properties-