Next Athleisure chairman Hilton Seskin revealed that Challenger Diversified Property, majority shareholder of the complex, agreed to extensive refurbishments of the historic shopping site in order to secure a leasing agreement for the cult UK label. “It was imperative that they did alterations for us to agree to that site,” Seskin said. “We had so many options but none could present the way we believe Jam Factory is going to deliver.” Seskin refused to comment on whether additional incentives had been offered to secure the deal, including competitive leasing arrangements. “I’m not saying we didn’t get some incentives,”he said. “Most retailers get some form of incentive.” Challenger Diversified Property retail asset manager Bianca Barrett revealed the company pursued Topshop through its leasing arm, CBRE, which enabled the group to lock the retailer in for a 10 year lease. Barrett says the company hopes anchoring the site with Topshop as a key retailer and investing $16 million into extensive refurbishments to reposition The Jam Factory image will help to improve the asset’s value. ““Our project team is working with designers and local planning authorities to translate the Topshop look into the Jam Factory’s heritage building.” Part of Challenger Diversified Property’s quest to cater the Jam Factory site to the Topshop image also includes plans to phase out lower-end retailers and focus on high-end brands to cater to a predominantly young urban professional demographic in the Chapel Street precinct. “We’re consolidating our fashion offer, moving away from areas that – let’s face it – have been challenged by online retailers. We’re choosing key concept stores that need to be felt and experienced,” Barrett said. Barrett revealed that the $16 million refurbishments are expected to lift the Jam Factory’s value to $123 million and are set to be completed by 2012. Topshop is currently negotiating on a number of sites in Sydney as well as Melbourne, Adelaide and Brisbane. Seskin estimated a 2013/14 completion date. Nadia Stennett
