Vicinity Centres (VCX.ASX), one of Australia’s leading retail property groups with a fully integrated asset management platform and $26 billion in retail assets under management, has issued an update regarding the appointment of voluntary administrators and receivers and managers to department store chain David Jones. The insolvency proceedings impact four David Jones stores within Vicinity’s portfolio, which collectively contribute approximately $34 million, or 2.4%, of the company’s share of gross rental income. Notably, the David Jones stores at Chadstone, Chatswood Chase, and QueensPlaza are reported to be among the retailer’s most productive locations.
As of 31 October 2026, David Jones had outstanding unpaid rent amounting to approximately $2.2 million. Vicinity Centres confirmed that it does not hold bank guarantees for these four stores, which have contractual lease expiries ranging from 2029 at Chadstone to 2041 at Chatswood Chase. Given the early stage of the administration and receivership process, the eventual outcome for individual stores and leases remains unknown, making it difficult to determine the precise nature, timing, and quantum of the financial impact on Vicinity.
Vicinity Centres intends to engage actively with the appointed administrators and receivers to assess the position of each store as the process unfolds. The company stated it maintains contingency plans for its David Jones locations and routinely evaluates alternative uses for major tenancy spaces as part of its ongoing asset planning strategy. Consequently, the impact on Vicinity’s FY27 earnings guidance is currently uncertain and remains under review pending further information regarding the administration proceedings and the treatment of specific leases. The market will receive an update once Vicinity is able to reliably assess any material impact on its FY27 earnings outlook.
