Gurner Group Commences Demolition on the Iconic $2.75B Jam Factory Redevelopment, Just 6 Months After Acquiring Full Ownership

Multi-billion-dollar developer GURNER™ Group has officially commenced demolition works at its $2.75b, 20,000sqm Jam Factory redevelopment, marking the beginning of construction on one of Australia’s most ambitious and transformative mixed-use precincts.

GURNER™ Group and joint venture partner Qualitas purchased the remaining 65 percent interest in the site from Newmark Capital on 30th of June after owning 35 percent since 2021.

Heavy machinery arrived on-site this week with initial demolition works to remove all non-heritage components across the 20,000sqm site, including the existing Village Cinema complex following their last day of operation last week, while protecting the building’s iconic façade.

The construction milestone follows a decade of failed attempts by other developers to bring the project to fruition, with GURNER™ Group the first developer to overcome these challenges — a testament to its unparalleled expertise and reliability in delivering world-class major projects.

GURNER™ Group has this week unveiled renders of the new precinct that will be home to:

• 600 ultra luxury residences over five landmark towers
• 10,000sqm commercial private office
• 20,000sqm of luxury retail and hospitality
• World Class Village Cinema + Gold Class complex
• 5-star hotel (operator in final negotiations)
• A boutique lifestyle hotel

First constructed in 1858, the Jam Factory has enjoyed over 160 years of history, first as a brewery, then as a preserving and jam manufacturer, and later, as an iconic retail and cinema precinct that anchored Chapel Street through the heydays of the 1990s and 2000s.

GURNER™ Group has appointed international, award-winning architects SOM alongside local architects, Buchan to design the precinct, in conjunction with its in-house architect and interior design business GURNER DESIGN HOUSE.

Iconic London landscape designer Townshend has been appointed to craft the impeccable gardens and landscaping that will emulate the grounds of Toorak mansions.

The regeneration of the precinct, retail, hospitality and hotels will capture the essence of the world’s best retail and mixed use precincts.

The design of the residential precinct will emulate some of New York’s most iconic residential and hotel addresses such as 220 Central Park South, alongside the grandeur of Toorak’s most expensive homes, complete with soaring high ceilings, large entry lobbies, libraries, games facilities and conservatory-like entertaining areas.

GURNER™ Group’s signature amenity offerings will once again be taken to another level with a private residents’ amenity of over 7,000sqm across the stages and two world class hotels.

In a significant coup for the project, GURNER™ Group and Qualitas have re-signed Village Cinemas to anchor the new entertainment precinct once complete. The cinema giant has enjoyed a 40+ year tenure at the Jam Factory and will return with a new flagship offering as part of the precinct’s rebirth.

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.

Surrounded by extensive hospitality offerings with a mix of fining dining options, casual eateries, and bars that celebrate Melbourne’s culinary talent, the Village Square will sit alongside high-end retail and vibrant entertainment options to create a new centrepiece for Chapel Street.

Elevating the shopping experience, the project will feature a meticulously curated selection of luxury retailers, rivalling international luxury shopping destinations, creating a missing high-fashion midpoint between Melbourne’s Collins Street and Chadstone.

Mann Group has been appointed to lead the demolition.

GURNER™ Group Founder and Chairman Tim Gurner said:

“ 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.

“ 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.

“ 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.

“ 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.”