Charter Hall buys Sydney department store

— 1 minute read

The property fund manager has purchased an iconic department store premises in the Sydney CBD for more than $500 million.

In a statement, Charter Hall said a consortium of its property funds and partnerships had purchased David Jones’ Elizabeth St flagship store on a sale and leaseback transaction with the retail group.

The $510 million purchase would provide a 20-year triple net lease with minimum 2.5 per cent annual rent increases supplemented by an agreed turnover rent linked to sales performance, the fund manager said.


The Charter Hall consortium purchasing the building consisted 50 per cent of its Long Wale REIT, 25 per cent of the broader Charter Hall Group and 25 per cent of its partnership with DVP, who were providing a debt facility for the purchase.

Charter Hall said the purchase was conditional on approval from the Foreign Investment Review Board for the lease to David Jones, which was purchased by South African-owned Woolworths Group in 2014.

“This acquisition is consistent with our strategy in so many ways, namely: securing Long Wale triple net leased assets, combining the appetite of our managed funds and partnerships to partner with the group on high-conviction prime real estate acquisitions, co-investing group capital alongside our partners to secure attractive earnings growth from our property investment portfolio, while also expanding the group’s FUM platform,” Charter Hall chief executive and managing director David Harrison said.

“Combined with other recently announced acquisitions and pre-leased development projects across office and industrial sectors, we expect the group’s FUM to exceed $45 billion as at 31 December 2020.”


Charter Hall buys Sydney department store
investordaily image
ID logo


related articles

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.