The venerable David Jones menswear store in Market Street, which has been in the group since 1938, has been sold for $360 million and will see apartments built on top of a revamped retail centre.

The long-anticipated sale comes only three days after the owners of the department chain, the South African Woolworths, revealed it was severing its corporate ties with Sydney by relocating head office operations to Melbourne.

David Jones' iconic Market Street store will be sold to the Scentre group for $360 million.

Scentre Group, the owner of the Westfield Sydney mall and the Melbourne-based super fund Cbus were the buyers. Scentre will redevelop the retail floors to adjoin its mall, while Cbus will develop the air rights into apartments.

In a statement late Monday evening, Scentre's chief executive Peter Allen said the group's share of the purchase price is $182.5 million with Cbus Property paying the balance of $177.5 million.