David Jones has been given a four week extension by Deutsche Bank AG to settle on its $414 million flagship store buyback.
In December last year, David Jones sought to unwind the sale and leaseback of its Sydney and Melbourne CBD store properties from the Deutsche Retail Infrastructure Trust.
The retailer will pay $362 million in cash and $45 million to unwind the agreement.
“We are working co-operatively and productively with Deutsche Bank and the Australian Taxation Office to progress the transaction,” David Jones’ chief executive officer Mark McInnes said.
“We have agreed a 4-week extension with Deutsche Bank, over which time we anticipate making considerable progress in addressing the condition precedent relating to the Australian Tax Office,” he added.
In December 2000, David Jones entered into a 79-year agreement with Deutsche Bank AG.
The properties were sold to Deutsche Retail Infrastructure Trust on a Sale & Leaseback structure for $366 million.
Deutsche Retail Infrastructure Trust paid $244 million in cash for the property and as part of the agreement, undertook a significant $112 million refurbishment and redevelopment of the stores.
By Nelson Yap
