Property Development

Home of David Jones’ famous food hall to get $300m makeover

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Written by The ReReport
As seen in the Source link, written by commercialrealestate.com.au on 2019-03-22 04:24:00

David Jones’ men’s store building, home of the chain’s famous food hall, is set to be transformed in a $300 million luxury retail, apartment and office redevelopment.

Owners of the 77 Market Street site, Scentre Group and Cbus Property, have lodged a stage-two development application with the City of Sydney for a mixed-use development at the north-eastern end of the city.

If approved, the development will add to the raft of planned projects in the CBD’s north-east, including a 49-storey mixed-use development and revitalisation of the City Tattersalls Club at the nearby 194-204 Pitt Street.

Retail landlord giant Scentre and super fund manger Cbus Property bought the site in 2016 for $360 million from the South African-based owners of David Jones.

Last year, following a global design competition, the joint-venture partners appointed FJMT Architects to the new development.

Connecting via the existing bridge and tunnel links to the David Jones men’s store, an extension to Westfield Sydney will anchor Sydney’s Castlereagh Street luxury precinct.

David Jones will vacate in the middle of next year with its food hall moving to the Elizabeth Street store.

Above the existing heritage building, the development will see a 22-level luxury residential tower with 100 boutique apartments overlooking Hyde Park and Sydney Harbour. Cbus Property will also include six levels of A-grade office space.

Scentre Group chief operating officer Greg Miles said the plan was an opportunity to transform an “iconic site from Sydney’s past into a contemporary precinct”.

“We have seen strong growth in luxury retail at Westfield Sydney, with the centre currently experiencing a wave of luxury-brand rejuvenation, expansion and renewal,” Mr Miles said.

The development of the David Jones men’s store site will cement the precinct as Sydney’s pre-eminent luxury retail destination.

Scentre Group’s Greg Miles
“Combined with the existing Westfield Sydney and David Jones’ $200 million investment into its Elizabeth Street store, the development of the David Jones men’s store site will cement the precinct as Sydney’s pre-eminent luxury retail destination.”

Cbus Property chief executive Adrian Pozzo said lodging the stage-two DA is a “milestone for the joint-venture partners that follows several years of design development and consultation with authorities and other stakeholders to ensure that an appropriate outcome is delivered of the highest quality that is befitting of such an iconic site”.

Mr Pozzo said strong market conditions would support the office component of the development.

“The addition of the residential tower to the existing building has been designed to have a striking presence on the Sydney CBD skyline,” Mr Pozzo said.

“With only around 100 apartments, we expect strong market interest from discerning purchasers who will enjoy central CBD living, outstanding interiors and iconic Hyde Park and Sydney Harbour views.”