Sale of Market Street property in Sydney and relocation of David Jones head office
Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1929/001986/06)
Share code: WHL
SALE OF MARKET STREET PROPERTY IN SYDNEY AND RELOCATION OF DAVID JONES
The Board of Directors of Woolworths Holdings Limited is pleased to announce the A$360 million
(R3.8 billion) sale of its Market Street property in Sydney to Australia's Scentre Group.
Up to A$200 million (R2.1 billion) of the sale proceeds will be used to develop the adjacent
Elizabeth Street building to create a world-class 39,000m2 department store on 11 levels, offering
the best of fashion and food available in the southern hemisphere. A three year lease-back of the
Market Street building will ensure that the redevelopment will occur in coordinated phases
(commencing in the second half of 2017) with limited disruption to David Jones' customers. The
redevelopment is expected to be completed in the second half of 2019.
The David Jones Head Office, currently housed within the two Sydney buildings, will be relocated
to Melbourne and consolidated onto a new campus with the Group's other Australian subsidiary,
Country Road Group. The company expects co-location to deliver synergies and productivity
benefits of at least A$10 million per annum from 2019, from a reduction in property, procurement,
off-site facility and travel costs and the consolidation of external services. The company has also
worked closely with the Victorian Government to structure a range of incentives to offset the cost of
8 August 2016
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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