There’s No Other Site Like 77 Market Street

International buyer interest expected in landmark David Jones offering

David Jones will next month launch an international sale campaign for its iconic Market Street building in Sydney – providing what is expected to be one of the city’s most unique development opportunities in decades.

Savills and CBRE have been charged with steering the marketing campaign for 77 Market Street.

Savills Simon Fenn, Ian Hetherington and Ben Azar together with CBRE’s Scott Gray-Spencer, Josh Cullen and Rick Butler will oversee the sale campaign.

Mr Gray-Spencer said significant buyer interest was anticipated from both national and international developers given the building’s landmark status, premier CBD location and compelling development prospects.

“This is a one-of-a kind offering, providing an opportunity for a developer to secure a highly significant land holding in Australia’s most vibrant retail precinct. Subject to the relevant planning approvals it affords the opportunity to develop a landmark project encompassing a mix of high street retail, hotel, commercial and/or residential uses,” Mr Gray-Spencer said.

Ben Azar, Savills Capital Transactions and Cross Border Investments, added “There is no doubt that this iconic asset will attract interest from all corners of the globe. This asset is a true mixed-use redevelopment opportunity incorporating high-end retail, commercial, residential and hotel. The proximity to Australia’s number one high-end retail precinct, Pitt Street Mall, all modes of public transport and harbour, city and park views will ensure this opportunity will attract global capital, especially from Asia.”

Completed in 1938 to mark David Jones’ 100th anniversary, the Market Street building is characterised by its sandstone heritage façade and signature corner curve, emphasising its inter-war, functionalist design.

Situated on a prominent corner site of 2,150sq m, the building offers large floor plates spread over 10 upper levels, in addition to lower-ground and basement space.

Mr Fenn said the three-year leaseback to David Jones, a subsidiary of listed South African retailer Woolworths Holdings, would be one of the key draw cards for prospective purchasers as would the site’s location in a precinct servicing the largest residential trade area population in Australia.

“The incoming owner will have the benefit of receiving a highly secure income stream whilst allowing ample time to consider various options for the site,” Mr Fenn said.

The combined residential, worker and tourism trade population in this precinct has a current expenditure of $50.2 billion pa. This is forecast to grow to $83.6 billion pa by 2026 on the back of strong growth in both the residential trade population and the CBD employment base.

The property is serviced by a myriad of transport options including Town Hall, Martin Place and St James Station as well as major bus routes along Elizabeth, Castlereagh, Pitt and George Streets.

The area is also expected to benefit from the pedestrianisation of George Street and the development of the South East Light Rail, which will further enhance the building’s connectivity.

Mr Gray-Spencer noted that the strength of the city’s retail market was expected to underpin buyer interest in the sale campaign following the arrival of high street juggernauts such as Zara and H&M and global luxury stores such as Christian Louboutin and Dior.

David Jones Chief Operating Officer, David Thomas, said “This sale will allow David Jones to focus on the redevelopment of our adjacent flagship Elizabeth Street store. Our aim is transform the Elizabeth Street store into the Southern Hemisphere’s leading department store. We believe that having a neighbour with such strong attributes in this vibrant precinct will serve as an added attraction to any potential purchaser and we look forward to progressing the sale process.”