The iconic David Jones store on Melbourne’s Bourke Street Mall has been sold for $223.5 million to Melbourne-based fund manager IP Generation. The deal, exclusively brokered by JLL’s Nick Willis and Sam Hatcher, marks the largest Australian CBD retail transaction in over three years and the biggest single-asset retail sale in Melbourne CBD in more than eight years.
David Jones, Bourke Street Mall, one of Australia’s most recognisable retail landmarks, spans approximately 25,000 sqm across seven levels. The property remains fully leased to David Jones on a secure triple net lease with 18 years remaining, ensuring long-term income stability for its new owner.
Originally built in 1911 for Buckley & Nunn’s department store, the property was acquired by David Jones in 1982, solidifying its place in Melbourne’s retail landscape. The department store, renowned for its heritage architecture and premium shopping experience, has undergone significant refurbishments, including a $38 million transformation that enhanced its top three retail floors, introduced a revamped beauty department, and welcomed luxury retailers such as Louis Vuitton, set to open in 2025.
JLL Senior Director Nick Willis highlighted the rarity of such transactions, stating, “Australian icons such as David Jones, Bourke Street Mall are rarely traded. The opportunity presented a unique investment proposition of irreplaceability, income security, and long-term value.”
The sale highlights a strong resurgence in Melbourne’s CBD retail market. Despite retail CBD transactions being down 87% from the 10-year average in 2024, Melbourne’s retail sector has shown resilience, with CBD vacancy rates now at a five-year low of approximately 5%, well below the national CBD retail average of 12%.
JLL’s Head of Retail Investments, Sam Hatcher, noted that David Jones’ consolidation of its Menswear Store in 2020 and the recent multimillion-dollar refurbishment reflect the brand’s ongoing commitment to the location. “The significant refurbishment has transformed the top three retail floors, a new ground-level beauty department and introduced luxury retailers such as Louis Vuitton set to open in 2025,” he said.
Chris Lock, Managing Director of IP Generation, described the acquisition as a rare opportunity to own one of Melbourne’s most prestigious retail assets. “David Jones, Bourke St Mall is one of the most iconic properties, not only in Melbourne but the whole Australian market. The ability to acquire 100% interest in such trophy assets rarely comes available. The gentrification that is occurring around Bourke Street, with the new Melbourne Walk development is further strengthening the precinct, which coincides with David Jones’s major store refurbishment and new luxury tenants opening including Aesop, Louis Vuitton and Gucci.”
IP Generation has combined David Jones, Bourke Street Mall with its recently acquired Cranbourne Park Shopping Centre into a new fund valued at approximately $350 million. This portfolio aims to provide investors with a balanced mix of long-term income security and growth potential.
JLL anticipates that development constraints and supply-demand imbalances will further reduce retail vacancy rates and drive rental growth in the sector. With major investments reshaping Melbourne’s retail landscape, the David Jones sale represents a significant milestone in the recovery and future prosperity of CBD retail investments.
Read the SUMMER ’25 issue of Retail Beauty below:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Connect with us on LinkedIn