Luxury property developer Gurner has teamed up with real-estate investment managers Qualitas and Newmark Capital to redevelop the Jam Factory on Chapel Street, Melbourne, into a five-tower precinct composed of retail, residential, hotel and commercial elements.
Expected to support 2,282 full-time jobs and bring in $500 million from construction costs alone, the redevelopment will contain 400 luxury residences, up to 200 rooms as part of a five-star hotel, and an upgrade to the existing cinema.
With plans now approved by the City of Stonnington, work will soon commence on the project, which includes more than 18,500sqm of retail space, 20,000sqm commercial office space, 1,195 parking bays and 7,000m of public realm and amenities for residents and locals.
“We’ve been working closely with the project team, as well as council, to deliver something truly world-class – the redevelopment will put Chapel Street back on the map, not only as a retail hub but as a luxury travel and lifestyle destination as well,” Gurner CEO and founder Tim Gurner said.
“This will take everything we have learnt from projects like Hawksburn Place Residences and Saint Moritz and elevate it to a whole new level – this is something that will truly put South Yarra at the upper echelon of world luxury property.
“The team we have assembled for this ambitious project is in a league of its own, and we’re looking forward to commencing works on the site as soon as possible.”
Expected to stimulate $800 million into the Victorian economy per annum, workers and residents are expected to spend more than $28 million at the precinct annually, while hotel guests are projected to bring in more than $12 million every year.
"The overwhelming support for the project speaks to the blue-chip nature of the location, the world-class vision of the project team and the combined power of the joint venture,” Qualitas global head of real estate and co-founder Mark Fischer said.
“Our fund investment strategy places an unrelenting focus on quality of our partners and quality of real estate, which gives us confidence this vision will soon become a reality.”
Newmark Capital will deliver and retain ownership of the commercial and retail component, while Gurner and Qualitas will provide the luxury residential and hotel component.
“It’s been rewarding working with Council and the local community to ensure the project proceeds to the benefit of all,” Newmark Capital managing director Chris Langford said.
“The offices will offer every amenity within an ideally located and connected community,” Mr Langford said.
“With stunning views and large floor plates, they represent workplaces of the future. They will boast spectacular views back to the city and the bay and will hold a special place in the Melbourne skyline.”
Designed by Bates Smart, the lead architects will be joined by Townshend Landscape Architects and Leonard Design Architects to create the mixed-use precinct.
“All remnant heritage fabric will be retained and restored - streets and lanes will connect the site to the surrounding street network and context. An active ground plane centred around a large north-facing village square will provide retail experiences, a new easily accessible supermarket and other essentials,” Bates Smart managing director Simon Swaney said.
“Other components include a range of residential apartments, a new hotel, upgraded cinemas, a new office complex, and basement-level car parking to establish a truly mixed-use complex where the synergy between each component enlivens the other. Sustainability remains at the forefront of its design, with a net-zero target for the project.”
The plans come off the back of several other projects Gurner has announced in 2022, including a $500 million development project in Nedlands Perth, a $300 million development in Geelong and a $120 million development project on the Gold Coast.
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