DJs menswear store to be turned into loft-style offices supermarket

When David Jones moves out of its menswear department store in Melbourne’s Bourke Street Mall, the heritage-nominated building it leaves behind will get a multi-million dollar facelift that turns its upper levels into loft-style offices and basement into a supermarket.

The David Jones menswear building at 299 Bourke Street.Credit:

The upmarket retailer is expected to move by August next year, prompting the building’s new owner, Newmark Capital, to submit plans to upgrade it.

DJ’s menswear store is split across two levels of the 1930s building on the south side of the mall, opposite its flagship outlet and rival Myer’s main department store.

The five upper floors are largely unused except for storage.

Newmark’s $22.55 million renovation includes three rooftop terraces accessible to office tenants across the five upper floors, upmarket shopping spaces on the ground and first floors, and a 2245 square metre supermarket in the basement.

Newmark’s co-founder Chris Langford said the renovation will give “real impetus to the Mall for driving change and enticing more people back to the city.”

But any rejuvenation is not without challenges.

The Mall, the city’s beating retail heart, is fighting to keep its premium shopping status as the pandemic changes consumer habits and foot traffic stays stubbornly low, even before the city entered its most recent lockdown.

David Jones historic Sydney menswear store is undergoing a similar transformation.

It is being turned into a high-end combination of apartments, office space, and luxury retail by owners Cbus Property and Scentre, the Westfield malls landlord.

As well as offices and shops, the former historic menswear store and food hall will house 101 luxurious apartments overlooking Sydney’s Hyde Park and the harbour.

Both Coles and Woolworths are understood to be interested in filling the basement space of the Melbourne menswear store, but Mr Langford declined to comment in detail on any leasing discussions for new tenants in the revamped building.

“We have got interest from a number of retailers and there’s a fair range between the categories they fit into. All of them would do a great job, attract a lot of customers and do good sales,” he said.

DJs sold the building to Newmark mid-pandemic last year for $121 million. However once it’s renovated, its expected end value will be about double that at $250 million.

The upper level offices will be accessed by a dedicated lobby on Little Collins Street, known as 280 Little Collins Street.

Simon Swaney from Bates Smart, the architects behind the project, said the building’s four office floors had large floor plates and significant natural light, offering flexibility, large meeting places and interconnectivity.

Newmark’s general manager of property, Angus Machutchison, said the addition of rooftop terraces will give tenants a unique view of the city.

He expects the office’s unique features, its high ceilings and modern juxtaposition of heritage features, to attract tenants, even in Melbourne’s difficult leasing market.

“Businesses will be increasingly focused on providing workplaces that have functionality, convenience and attractiveness to bring staff back to their offices,” he said.

The historic Bourke Street Mall shopfronts will be upgraded with metal canopies and glazed facades that are sympathetic to the existing heritage fabric, Mr Swaney said.

Simon Johanson is a business journalist at The Age and The Sydney Morning Herald.

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