Demolition work has officially begun on the $2.75 billion Jam Factory redevelopment in South Yarra, Melbourne, marking a significant milestone for one of Australia’s most ambitious mixed-use projects.
GURNER Group and joint venture partner Qualitas initiated the demolition just six months after acquiring full ownership of the 20,000-square-metre site.
Heavy machinery arrived on-site this week to remove non-heritage components, including the recently closed Village Cinema complex, while preserving the building’s iconic façade.
This development comes after a decade of unsuccessful attempts by other developers to revitalise the historic site.
The new precinct will feature:
- 600 ultra-luxury residences across five towers
- 10,000 square metres of commercial office space
- 20,000 square metres of luxury retail and hospitality areas
- A new flagship Village Cinema complex
- Two hotels, including a five-star property and a boutique lifestyle hotel
Central to the development is the Village Square, a 2,500-square-metre north-facing public piazza designed to rival world-class public spaces.
The project aims to establish itself as a high-end shopping destination between Melbourne’s Collins Street and Chadstone, featuring luxury retailers, fine dining venues, and bars.
Tim Gurner, GURNER Group Founder and Chairman, expressed excitement about the project’s commencement, stating: “We are incredibly humbled and beyond excited to have commenced works on what we know is Melbourne’s most important development site.”
He emphasised the project’s significance in reinvigorating the Chapel Street precinct and creating a world-class cultural destination.
International architects SOM will collaborate with local firm Buchan and GURNER Design House on the project’s design.
London landscape designer Townshend will create gardens emulating Toorak mansion grounds.
The redevelopment of the Jam Factory, which has a rich history dating back to 1858, is set to transform this iconic Melbourne landmark into a vibrant, mixed-use precinct that combines luxury living, high-end retail, and world-class entertainment.
