As the competition to buy the iconic David Jones store in Sydney enters its second phase, new names are emerging as parties that have shown interest in the highly prized site.
DataRoom understands that among the groups that have been competing are Ashe Morgan and also Victor Comino, along with Sean Bonnett’s Precision Group and Charter Hall.
While Scentre Group was mentioned in the early stages of the contest as showing interest, it is understood to have been fickle when it comes to its appetite for making an acquisition, with much of its desire to move forward dependent on a various of conditions, and the thinking is that it is unlikely to be in the second round.
Parties were shortlisted on Wednesday in the process for a sale and lease back of the David Jones sites in Sydney and Melbourne being run by investment bank UBS on behalf of the department store’s South African owner Woolworths.
Mr Comino and wealthy retailer Brett Blundy have teamed up in the past to bid for an office and retail property from Stockland at 135 King Street in Sydney’s Pitt Street mall worth about $700m, as reported last year by The Australian.
The understanding is that they once again could be bidding together for the David Jones process.
Mr Comino owns another the building at 160 Pitt Street, which had housed Soul Pattinson pharmacy for almost 150 years.
Ashe Morgan is a fund manager that last year purchased Brisbane’s Australian Government Centre from Oxford Property Group for $430m.
The company is run by Michael Moss.
The David Jones property sales process involves not only the Sydney site in the heart of the city but its store at 310 Bourke Street Melbourne.
However, the disruption to the city from the COVID-19 lock downs means that much of the attention has focused on the Sydney site, with the Melbourne store potentially sold at a later stage.
David Jones is offloading assets to pay down debt, and the sale process comes with talk that the company of Indian billionaire Mukesh Ambani, Reliance Retail, has been showing interest in an acquisition of the iconic Australian department store.
Reliance is believed to be looking at various retail acquisition targets in the Australian market so it will be interesting to see if the group also casts an eye over rival Myer.
Buyers for the flagship Sydney store on Elizabeth Street have come forward with offers said to be about $400m-$500m.
The entire portfolio is expected to sell for about $700m, but the price hinges on how much rent David Jones pays the new owner.
David Jones has already reaped $120m for a sale of one of its central city Melbourne site on 299 Bourke Street.
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