GURNER™ and Qualitas Take Full Ownership of Jam Factory, Unveil $2.75 Billion Luxury Redevelopment Plan in South Yarra

Gurner Jam Factory Streetscape
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In a significant move for the South Yarra property landscape, GURNER™ and Qualitas have acquired the remaining interest in the Jam Factory from primary development partner Newmark Capital. The iconic 20,000sqm site is now under the sole ownership of the developer and the alternative real estate manager, who plan to deliver a $2.75 billion mixed-use project that promises to redefine the area.

GURNER™ and Qualitas are investing $180 million in equity to settle and develop the site. Qualitas, a leading alternative real estate investment manager in Australia, is leveraging its funds capital alongside additional capital raised through private and offshore institutional investors to support the ambitious project.

The collaboration between GURNER™ Group, Qualitas, and Newmark Capital has been instrumental in unlocking the potential of the Jam Factory site. The new ownership structure allows GURNER™ and Qualitas to phase the project’s delivery into smaller, independently built stages, mitigating risks associated with the current challenging construction environment.

Founder and Executive Chairman Tim Gurner of GURNER™ commented on the project vision:

“Building on the vision we created with Newmark, I truly believe this to be Melbourne’s most important and iconic regeneration site.

“We are very excited to be able to deliver this incredible project with our long term strategic partner in Qualitas and we know together we can revitalise this critical site for Melbourne”

“There is no other site like this in Melbourne with 20,000sqm of prime South Yarra land sitting on Melbourne’s most important retail strip of Chapel Street, it’s an iconic site that we know we can bring back to its glory days.

“We are truly humbled to be able to have creative control of such an important Melbourne icon and feel immense pressure to ensure we do it justice for all Melbournians and visitors to enjoy” Gurner stated.

^Tim Gurner (Middle) pland to buold on the vision for the Jam Factory site in South Yarra (Image: GURNER™)
^Tim Gurner (Middle) pland to buold on the vision for the Jam Factory site in South Yarra (Image: GURNER™)

GURNER™ is already working closely with the local council to secure approval for the Stage One scheme within months. This will pave the way for demolition and construction to begin in early 2025, with the entire project expected to commence by the end of that year.

The redevelopment of the Jam Factory aims to transform Chapel Street, revitalizing it to its former iconic status. The revised scheme emphasizes the retention of the heritage façade, a nod to GURNER™’s commitment to heritage projects. A key feature will be the repositioned Village Cinema complex, anchored on a north-facing 1800sqm public piazza designed for VIP launches and community events.

The comprehensive development plan includes a blend of commercial, retail, hospitality, and residential spaces. The precinct will feature approximately 15,000sqm of commercial office space, over 20,000sqm of retail, Village Cinemas, a wellness precinct, two hotels, and ultra-luxury residential towers. The development aims to create a thriving community hub where people can live, work, and play, centered around a world-class piazza that showcases the original Jam Factory chimney.

^Site Plan for project facing Chapel Street in South Yarra (Image: GURNER™)
^Site Plan for project facing Chapel Street in South Yarra (Image: GURNER™)

Tim Gurner shared his vision for the Jam Factory redevelopment, emphasizing the project’s luxurious and community-centric elements:

“We have been working very closely with Village to re-design a brand new, world class cinema offering which will anchor the retail and provide an opportunity in the piazza for all of the best events, cinema openings and awards nights. I can very clearly see the red carpet arrival from our hotel port cochere down into the piazza and into the incredible cinema and entertaining space.

“We’ll be taking opulence, sophistication and luxury to a whole new level with our sky-high mansions, delivering a level of residence that was previously only found on Toorak’s most exclusive streets. Think arch-shaped pools, basketball courts and recreation areas, private events, exclusive resident services, and amenities that rival those of the world’s most exclusive hotels.

“We’ll be taking all our learnings from the likes of Saint Moritz and Hawksburn Place and delivering custom ultra luxury high-end residences, with a real focus on home and warmth.”

Residential offerings will range from $750,000 to over $30 million for penthouses, with amenities designed to rival New York’s upper east side. These include a 10m high library and lounge, a large outdoor pool with formal gardens and a pool tea house, a cigar lounge, afternoon tea drawing rooms, an extensive art collection, and GURNER™’s signature wellness facilities.

Gurner Jam Factory Image
^The Jam Factory Redevelopment in South Yarra (Image: GURNER™)

The retail precinct will target premier lifestyle brands, aiming to reinvigorate Chapel Street. The top floors of the heritage buildings are expected to house some of Australia’s most renowned hospitality operators.

Negotiations for the Stage One build are underway, with demolition slated to start in early 2025. This development is set to anchor Chapel Street’s transformation, restoring its vibrant energy and iconic status.

Note: The information presented in this article is for general informational purposes only and should not be relied upon as legal, financial, or professional advice. While we make every effort to fact-check and verify the information presented, we cannot guarantee its accuracy or completeness. Readers are encouraged to independently verify any information they find on our website and to consult with relevant professionals before making any decisions based on the information presented. The Australian Development Review does not own the rights to the information included within this article, and furthermore, there is no infringement intended from the included text and images within.

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