DJs to update market on strategy
It could include plans to redevelop its flagship Melbourne and Sydney assets to include some residential component.
In September last year, the company revealed it had appointed real estate consultant Cushman & Wakefield to value the four stores it still owns, two each in Sydney and Melbourne. The value was a combined $612 million, with the store in Elizabeth Street, Sydney, being among the most valuable due to its air rights above the existing seven floors.
In October, group executive retail services Tony Karp was quoted saying the retailer was "sitting on significant value and we are motivated to determine how best to monetise that value".
The group is said to be reluctant to enter into any sale and leaseback of prime city assets.
At the time the Cushman & Wakefield report was issued, DJs' directors committed to updating the market on development plans for the CBD properties at the interim results.
Early appraisals revealed the department store could add about 20 storeys to its Market Street, Sydney, property and three to five on its Elizabeth Street store.
The plans for the Melbourne stores are less advanced as the retailer awaits the completion of the nearby Emporium. But it could also involve a small office tower atop the stores.
Frequently Asked Questions about this Article…
David Jones is expected to update investors at the first‑half results presentation on its property strategy, including possible redevelopment plans for its flagship Sydney and Melbourne assets and how it might monetise the value of those properties.
The retailer had Cushman & Wakefield value the four stores it still owns: two in Sydney (Market Street and Elizabeth Street) and two in Melbourne. Those four stores were the focus of the valuation and potential redevelopment discussion.
Real estate consultant Cushman & Wakefield was appointed to value the four stores, with a combined valuation of about $612 million.
The Elizabeth Street store in Sydney is among the most valuable because of the air rights above its existing seven floors, which give potential to build upwards and increase the asset’s redevelopment value.
Early appraisals mentioned in the report indicated the Market Street, Sydney, property could potentially add about 20 storeys, while the Elizabeth Street store could add about three to five storeys as part of redevelopment.
According to the article, the group is said to be reluctant to enter into any sale and leaseback of prime city assets, preferring other ways to monetise property value.
Plans for the Melbourne stores are less advanced. David Jones is awaiting completion of the nearby Emporium, and any redevelopment could also involve adding a small office tower above the stores.
Investors should watch for concrete details on the proposed redevelopment plans (including any residential or office components), timelines, how the company intends to monetise the $612 million of asset value highlighted by Cushman & Wakefield, and any confirmation of the group’s stance on sale and leaseback arrangements.
Call 1300 880 160
Start a chat
Schedule a call
