GURNER and Qualitas have acquired the remaining interest in the iconic Jam Factory site from Newmark Capital, becoming the sole owners of the 20,000 sqm property in South Yarra, Melbourne.
The joint venture partners plan to deliver a $2.75 billion city-defining project that aims to revitalise the area and transform Chapel Street.
The developers are injecting $180 million in equity to settle on and develop the site, with Qualitas leveraging its position as a leading alternative real estate investment manager to raise additional capital through private and offshore institutional investors.
The revised ownership structure allows for a phased delivery of the project, breaking it into smaller, independently buildable stages.
This approach is designed to mitigate risks in the current challenging construction environment.
Tim Gurner, Founder and Executive Chairman of GURNER, expressed enthusiasm for the project, stating: “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.”
The ambitious redevelopment plans include:
- 15,000sqm of commercial office space
- Over 20,000sqm of retail area
- Village Cinemas complex
- Large wellness precinct
- Two hotels
- Ultra-luxury residential towers
The project will feature an 1800 sqm north-facing public piazza, which will serve as a focal point for community events and VIP launches.
The developers are collaborating with the local council to secure approval for the Stage One scheme, with demolition and construction expected to begin in early 2025.
Village Roadshow, a long-standing tenant, will remain a key part of the development. Clark Kirby and Robert Kirby, CEO and Executive Chairman of Village respectively, expressed their excitement about partnering with GURNER to create “the best cinemas in the entire world” as part of this extraordinary new development.
The residential component of the project will offer a range of options, from $750,000 apartments to $30 million+ penthouses. The development will boast over 15,000sqm of amenities, including a 10m high library, outdoor pool, formal gardens, and GURNER’s signature wellness offerings.
Mark Fischer, Qualitas Global Head of Real Estate and Co-Founder, highlighted the significance of the partnership, stating: “Our ability to provide flexible capital for this large project demonstrates our equity investment capabilities”.
This landmark acquisition and development plan represents a significant step in the ongoing transformation of Chapel Street and South Yarra, with the potential to redefine Melbourne’s retail, entertainment, and luxury residential landscape.
