Charter Hall pays $385m for David Jones flagship Sydney CBD store

A consortia of Charter Hall–managed funds/partnerships has exchanged contracts to purchase the David Jones flagship Elizabeth Street store, located at 86–108 Castlereagh St. in Sydney, for a purchase price of A$510 million ($385 million).

This iconic Sydney CBD property comprises 12 levels on a strategic 3,530 square meters (38,000 square feet) prime CBD retail site with frontages to Elizabeth, Castlereagh and Market streets, prominently located overlooking Hyde Park with views to Sydney Harbor. The building comprises large floorplates of up to 2,920 square meters (31,430 square feet), with excellent natural light to three elevations.

The Charter Hall–managed consortia acquired the property in a sale-leaseback transaction with David Jones, which will provide a 20-year, triple-net lease, with minimum 2.5 percent per year annual rent increases supplemented by an agreed turnover rent linked to sales performance.

The Charter Hall–managed consortia comprises