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Australia : David Jones Limited plans more stores in Melbourne
November 29, 2007 |  |
David Jones (DJs) has unveiled plans to create Melbourne’s pre-eminent department store by investing $85 million in the redevelopment of its two flagship Bourke Street Melbourne CBD stores. The redeveloped sites will deliver 30% more selling space for key categories & an increased number of Australian & international brands.
Enormous growth potential exists for David Jones (DJs) in the Melbourne metropolitan market - DJs estimates the market opportunity of an additional $300 million in sales over time.
DJs announced that it will consolidate its Melbourne CBD presence in the Bourke Street Mall by
- investing in the redevelopment & refurbishment of its two flagship Bourke St Melbourne CBD stores; and
- selling its ‘Home Store’ located at 266 Little Bourke Street.
The recent sale of Myer’s Bourke St & Lonsdale St properties to property developers (CFS JV) has provided DJs with a ‘once in a century’ opportunity to maximise value from the sale of its adjoining Home Store – and is another example of Industry restructure benefits for DJs.
DJs was able to capitalise on this opportunity as a result of its reacquisition of its flagship Melbourne & Sydney CBD stores in Sept 2006.
DJs entered into agreement with the CFS JV on 19 Nov 2007, to sell its Home Store for a total transaction value in excess of $50 million. This represents $6,553 per sq. m - an attractive premium to the price paid by DJs in Sept 2006 & delivers a ‘one-off profit’ of $10-$12 million.
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