Gurner Gets Work Under Way on Jam Factory Site, a AU$2.75 billion mixed use development in “Once in a Lifetime Opportunity.”
Finally, after a decade of false starts and failed attempts, the wrecking balls have started swinging at Melbourne’s Jam Factory site, heralding the beginning of an ambitious mixed-use development.
Gurner Group has commenced demolition works in late 2024, marking the start of construction on its $2.75-billion mixed-use development, in the heart of Chapel Street in Melbourne’s exclusive South Yarra, 4km south-east of Melbourne.
Mann Group will lead the demolition phase on the historic 20,000sq m site, for what Gurner said would be “a renewed world class cultural icon, and a destination for all of Melbourne that brings people together for dining, entertainment, culture and experiences”.
The building’s historic facade will be preserved.
The Jam Factory redevelopment will deliver approximately 600 new dwellings over five towers in Melbourne’s sought-after inner fringe, while anchoring the transformation of Chapel Street to reinvigorate it with a 2,500sqm north-facing public piazza called Village Square, that will rival the world’s most iconic public realms, surrounded by hotels, retail, hospitality, commercial office and residential.
The development will include more than 7000sq m of private club amenities across its stages, including libraries, games facilities, and conservatory-like entertaining areas, similar to those in Gurner’s other private Clubs, Saint and Saint Haven.
International Estate Agent and leading apartment buyer agent representing overseas buyers, Mike Bentley, said “I have been lucky enough to have visited and inspected some of Asia’s best residential developments. But the vision of the private club facilities and amenities in Gurner’s other projects is second to none. I have every confidence the Jam Factory will live up to all expectations.”
The development includes two hotel offerings—a five-star hotel currently in final operator negotiations, and a boutique lifestyle hotel. The five-star property will feature function rooms, a conference centre, bar, restaurant, fitness facilities, spa, pool, and ballroom.
The commercial precinct will include 10,000sq m of commercial private office space and 20,000sq m of luxury retail and hospitality areas.
Village Cinemas will return as an anchor tenant, continuing its 40-plus year association with the site with a new flagship cinema complex including Gold Class facilities.
- “We are incredibly humbled and beyond excited to have commenced works on what we know is Melbourne’s most important development site, which gives confidence to our high end purchases of completion date and quality,” says GURNER Group Founder and Chairman Tim Gurner.
“A truly once in a lifetime opportunity for our brand and team and also for the luxury clients who are able to purchase in this incredible precinct.“Commencing construction on the site is not just a significant milestone for GURNER Group, it’s a huge step forward for the reinvigoration of the entire Chapel Street precinct. Our aspirations are to spearhead a new coming of age for the precinct so we have made sure to design a destination that can bring together world class events, activations and brands to the site and celebrate this special part of Melbourne.”
The retail precinct aims to establish itself as a high-end shopping destination between Melbourne’s Collins Street and Chadstone, featuring a curated mix of luxury retailers, fine dining venues, casual eateries, and bars.
Central to the development is the Village Square: a 2500sq m north-facing public piazza.
London landscape designer Townshend has been appointed to craft the impeccable gardens and landscaping that will emulate the grounds of Toorak mansions.
“Our brand and business is focussed on these large-scale projects; where we are typically competing against the public companies, are we are able to bring speed, flexibility and a high amount of innovation and creating thinking to these special sites,” Gurner says.
“Our vision for the Jam Factory is to create a renewed world class cultural icon, and a destination for all of Melbourne that brings people together for dining, entertainment, culture and experiences. We are humbled to be able to start construction and feel honoured to be the custodians of this special site.
“To be able to bring Jam Factory back to life with our friends at Village is incredibly exciting and we will be building them what we know will be the world’s best movie precinct. To be able to create a retail, hospitality, hotel and residential precinct like this in the heart of South Yarra over 20,000m of land is truly a once in a lifetime opportunity.”
The development is one of Australia’s most ambitious and transformative mixed-use precincts, according to Gurner.
International architects SOM will work alongside Victorian architects Buchan and Gurner Design House, while London landscape designer Townshend will create gardens planned to emulating Toorak mansion grounds.
First developed in 1858, the site has served as a brewery, preserving facility and retail precinct. The current redevelopment comes after several ownership changes and revised proposals.
In April, 2018, Stonnington Council approved a $500-million proposal from Newmark Capital, who purchased the site for $165 million in 2015.
The latest iteration emerged in July of this year when Gurner and Qualitas acquired full ownership for $180 million, supported by Qualitas’ recent $300-million commitment from ADIA.
Stonnington Council had long maintained that Chapel Street’s revival hinged on the Jam Factory’s redevelopment.
Gurner Group also announced the appointment of former Crown Sydney and Crown Hotels chief executive Peter Crinis as group chief operating officer of hospitality.
Crinis will oversee the group’s hospitality ventures, including Saint Haven and SAINT Private Clubs, plus a pipeline of more than 10 hotels.
According to the company, Crinis will work alongside chief executive Ahmed Fahour and Tim Gurner to drive the group’s next phase of growth and expansion, applying high-end service standards across accommodation, retail, hospitality, clubs and sales.
