The relocation of department store David Jones to GPT Group's Wollongong Central shopping centre has prompted the owners of the original site to put the property on the market, which is likely to attract residential developers.
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The property comes with airspace above a lane and between two other properties, according to the agents on the deal, JLL's director, metropolitan sales and Investments, NSW, Paul Hunter and senior executive Gary Mason.
David Jones is moving into the former Myer site at Wollongong Central, where it plans to open a "new-look" department store with a focus on food and digital and physical shopping options.
The sale comes as Wollongong's city is undergoing a major multimillion-dollar upgrade from the expansion of residents to the area as well as the growing university.
The 15,991 square metre site at 163-177 Crown Street and 80 Church Street, is being sold by a private vendor and no price was disclosed.
Mr Hunter said the 3503 sq m land area over two sites comprises 8998 sq m of retail space and a five-level car park building and basement storage of 6993 sq m, which would be attractive to a developer.
He said the site includes leased airspace for the building which is above Globe Lane and connecting the buildings to the two sites.
The property has been occupied by David Jones since the 1970s and its current lease term is for 10 years expiring on October 31, 2020. David Jones plans to move into a new department store at the neighbouring Wollongong Central Shopping Centre late next year.
The eventual purchaser of the property will work with David Jones to negotiate any terms of release.
"This property is a very unique offering and the potential is three-fold," Mr Hunter said.
"Prospective buyers could look at owning and occupying the property, with the benefit of a large flexible floor space, repositioning the asset or fully redeveloping the site."
The sale price of the property and potential gross floor area are dependent upon the purchaser and eventual use of the site, given the differing floor space ratios.
Mr Mason said the property's location would spark interest in the market.
"Proximity to transport, entertainment, retail and important amenity such as hospitals and educational facilities remain sought after by investors and developers," Mr Mason said.
"The site's dual-street frontage and flexible planning controls strengthen the potential to craft a brand new development for the Wollongong community."
