Scentre Group to purchase Sydney CBD office for A$360m
Scentre Group with its joint venture partner Cbus Property has purchased the David Jones Market Street building in Sydney’s CBD for A$360 million ($278 million).
Scentre Group’s share of the purchase price is A$182.5 million ($140.8 million) with Cbus Property paying the balance of A$177.5 million ($136.9 million).
David Jones will continue to occupy the site until late 2019 under a lease agreement providing a 4.5 percent per annum rental return on the acquisition price.
During the leaseback period, the co-owners will obtain the necessary approvals to redevelop the site when David Jones vacates the building.
On completion, the redeveloped 77 Market Street site will comprise approximately 107,639 square feet of luxury retail space integrated with Westfield Sydney.
In addition, Cbus Property will convert some of the existing building into office space and develop a luxury residential tower above, overlooking Hyde Park.