David Jones has confirmed that it has exchanged contracts on its historic Bourke Street menswear store at $121 million with Newmark Capital Ltd.

Newmark Capital is a property funds management business. It was founded in 2011 “to provide the opportunity for private investors to have access to high calibre commercial properties”. Newmark owns numerous commercial and retail assets in Victoria, including the South Yarra Jam Factory for which it paid $165 million in 2015. 

The Bourke Street sale was arranged by Simon Rooney of CBRE and JACX Property.

The 14,504 sqm David Jones menswear store is a six-storey retail building built in 1930 on the site of the original Coles Book Arcade, founded by E W Cole. It later became a major store operated by G J Coles (no relation). The building was refurbished in late 1987, retaining the original, decorated, pink-tinted facades. A yearlong restoration of the facade was completed in 1997.

The sale is based on a short-term leaseback to David Jones, with the new buyer planning an eventual refurbishment, said to include a loft style office in the upper levels and ground floor retail.