The David Jones site at 299 Bourke Street, Melbourne has sold.
A property development and investment company co-run by a Hawthorn premiership player has been revealed as the buyer of David Jones’ Bourke Street Mall menswear store.
Chris Langford’s Newmark Capital splashed $121m to secure the 299 Bourke St building, which had belonged to the troubled department store retailer for 33 years.
The buyer plans to refurbish the heritage seven-storey property when David Jones vacates at the end of its lease, creating a “mixed-use landmark asset”.
It has been reported Newmark will look to convert the building into offices while securing a retailer for the ground floor.
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Chris Langford shares a moment with his son Will Langford, himself a premiership player, after the 2014 Hawthorn premiership. Picture: Wayne Ludbey
The Herald Sun reported in May that David Jones had struck a deal to sell its menswear store and expected the deal to be wrapped up within months.
“The sale price achieved is in line with expectations and final settlement is anticipated before the end of July,” the retailer’s parent company, Woolworths Holdings, said in a statement.
David Jones has now confirmed it has exchanged unconditional contracts with Newmark for the property, which was built as Coles’ flagship store between 1929 and 1938.
CBRE’s Pacific head of retail capital markets Simon Rooney negotiated the deal alongside former CBRE director Mark Wizel and JACX Property.
Mr Rooney said the property attracted “significant levels” of international and domestic interest, resulting in more than 140 inquiries and 15 bids to reflect “one of the most competitive retail campaigns for an asset of this size and nature”.
He said Newmark had been attracted to the building’s landmark status, prime 2247sq m site in the tightly held Bourke Street Mall, and the fact it would become vacant following a short leaseback to David Jones.
When the property hit the market in November with price expectations in excess of $150m, then-CBRE director Mr Wizel said it would be offloaded with a short-term lease that would see it continue to be occupied by David Jones for at least 18 months, and as long as three years, after settlement.
Night shoppers outside David Jones. Picture: Mark Stewart
Dermott Brereton and Chris Langford celebrate their win with the premiership cup after the 1988 AFL Grand Final.
David Jones chief executive Ian Moir said the sale would allow the retailer to focus on creating and “optimising” a single flagship store out of its 310 Bourke Street building — currently its flagship womenswear site — while “simultaneously paying down debt”.
“The redeveloped 310 Bourke Street will be specially curated for our Melbourne customers with an emphasis on premium luxury and lifestyle brands,” he said.
Newmark Capital Simon Morries — who co-founded the property fund manager with Langford — said the purchase highlighted its “focus on building an unparalleled portfolio of assets”.
Gary Ablett and Chris Langford in the iconic 1989 Grand Final.
It also owns South Yarra’s Jam Factory complex, for which it announced a $450m redevelopment in 2017, and paid $135m for Wheelers Hill’s Brandon Park Shopping Centre in 2018.
Langford won four VFL/AFL premierships with the Hawks in the ‘80s and ‘90s and his son, Will, played in the club’s 2014 flag.
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