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- Charter Hall Long WALE (CLW) has locked in a contract to secure a 50 per cent interest in David Jones’ flagship Sydney store for $255 million
- A consortium of Charter Hall managed funds and partnerships exchanged contracts to acquire the heritage-listed Elizabeth Street store
- The remaining 50 per cent ownership is split down the middle between the Charter Hall DVP partnership and the Charter Hall Group
- The Elizabeth Street department store first opened in 1927 is worth around $510 million
- A total of $400 million worth of capital works have recently been completed on the store
- CLW shares closed up a modest 0.43 per cent at $4.66 each
Charter Hall Long WALE (CLW) has secured a 50 per cent stake in David Jones’ flagship Sydney store for $255 million.
A consortium of Charter Hall managed funds and partnerships exchanged contracts to acquire the heritage-listed Elizabeth Street store, taking the property purchase price to a tidy $510 million.
The remaining 50 per cent ownership is split down the middle between the Charter Hall DVP partnership and the Charter Hall Group.
The purchase price reflects a five per cent initial yield based on an annual net rent of $25.5 million, according to the company.
CLW Fund Manager Avi Anger spoke highly of the acquisition.
“This property offers a unique opportunity to secure an iconic property on a large freehold site in the centre of the Sydney CBD with a NNN (triple-net), 20-year lease, which increases CLW’s proportion of NNN properties by net income to 55 per cent,” he said.
Earlier this year, David Jones completed a $400 million transformation of the Elizabeth Street Flagship, in a bid to bring David Jones’ heritage into a state-of-the-art new era.
The David Jones Elizabeth Street store first opened in 1927.
CLW shares closed up a modest 0.43 per cent at $4.66 each.
