David Jones has entered into a period of exclusivity with Charter Hall Group in relation to the sale of the retailer's flagship Elizabeth Street property.
The discussions come as parent company Woolworths Holdings (South Africa) reviews the capital structure of its Australasian entities including its property portfolio.
The business has already sold off its Bourke St menswear building for $121 million and this week appointed its fifth CEO in six years, Country Road's CEO Scott Fyfe, to lead the business.
David Jones reports that the sales process of the property will be optimised by entering into an exclusive period with its preferred partner, Charter Hall.
Charter Hall is one of Australia’s leading fully integrated property groups with over $42 billion of funds under management.
David Jones wants to realise an outcome on the Elizabeth Street property in the near term, however discussions with Charter Hall are ongoing and currently remain incomplete.
Any potential transaction will be subject to completion of confirmatory due diligence, negotiation of definitive agreements and any requisite third party approvals.
The sale comes after the retailer spent $200 million redeveloping the Elizabeth St property.
The business reports that options in relation to the David Jones Bourke Street Mall property may be revisited in the future.