Chapel St Jam Factory: $500 million redevelopment of retail hub to start within a year

A MAMMOTH $500 million overhaul of South Yarra’s iconic Jam Factory is expected to start within 12 months after Stonnington Council tonight gave it the green light.

An artist's impression of the $500 million Jam Factory mega-development.

A MAMMOTH $500 million overhaul of South Yarra’s iconic Jam Factory is expected to start within a year, after Stonnington Council tonight gave it the green light.

Plans to transform the Chapel St retail and cinema hub into a huge business, retail and entertainment precinct, part of it 15 storeys high, were announced by property developers Newmark Capital in October 2017.

After councillors unanimously approved the plan at tonight’s public meeting it was revealed the huge project will see the precinct closed until 2020, and a near-total demolition.

The 159-year-old building’s facade and internal chimney will be preserved, the complex reconstructed as five separate buildings, and 25 per cent of the 19,280sq m site to be open space.

Newmark, also owner of the Como Centre, bought the Jam Factory site in 2015 for $165 million.

The spokesman confirmed the total cost of the project, will be close to half a billion dollars.

“We expect about 1000 construction jobs will be created when work begins towards the end of this year,” he said.

The interior will be completely refurbished.

Space occupied by popular retailers TGI Fridays and Target, as well as Village Cinemas, will be vacated to make way for a 100,000sq m complex.

Six storeys will also extend underground.

The revamped district will include office space, retail and dining, an open-air public plaza, a garden terrace and 1350 underground parking spaces.

A new state-of-the-art 2300 seat cinema complex will replace the old Village Cinema site.

Laneways under the Jam Factory will also be revived.

The plan also includes a total of 750 bicycle parking spaces and 40 change rooms/showers.

According to a council report, the new precinct will potentially provide 5000 permanent jobs when it reopens in 2020.

The report also states this figure is five times the total jobs created in Stonnington between 2011 and 2016.

Developers Newmark Capital say the redevelopment will encompass 750 bike parking spaces. Picture Jake Nowakowski

Newmark Capital’s permit application generates a statutory parking demand of more than 5000 spaces but the plan only allows for 30 per cent of the required parking.

Council officers support the reduction in parking as the new complex is expected to promote walking, cycling and public transport as an alternative to driving.

Council’s transport engineers believe the full 5000 spaces would have a significant detrimental impact on traffic activity in the area and as a result have advised that they “do not want any more car parking than is currently proposed”.

Councillors approved the project unanimously, despite the application receiving 35 objections.

North Ward councillor John Chandler described it as a “very exciting and important project.”

“It will be an area where people can find jobs and go to work,” Mr Chandler said.

Newmark Capital project director Jonothan Bradhurst said the decision and plan would mean “a great outcome for the Chapel Street and wider community, as well as existing and future local businesses.”

“We are heartened by the encouraging feedback we received from residents, traders and stakeholders during the course of the consultation period,” Mr Bradhurst said.

Newmark will retain the ownership and lease of the complex expected to be worth about $1.5 billion when finished.

The planning permit also allows for the complex to be open 24 hours a day, seven days a week.