Tim Gurner unveils dramatic $800m Richmond post-pandemic property blitz

Tim Gurner is moving faster than just about any other luxury private developer in the country, planning to bring a touch of New York to inner-Melbourne.

Tim Gurner has unveiled an $800m development in the Melbourne suburb of Richmond. Picture: Alex Coppel

Property magnate Tim Gurner is stepping up the dramatic post-pandemic expansion of his empire by unveiling an $800m mixed project in the once grungy inner-Melbourne suburb of Richmond.

While the mogul is planning to bring a touch of his customary glitz and glamour to the site, best known as the home of Harry the Hirer, he insists it will pay homage to the area’s industrial past with hopes of creating a blend of two famed New York neighbourhoods, and will have a funky Greenwich Village meets the Meat Packing District vibe.

Mr Gurner’s off-market purchase from the Astrodome Hire, owner of the rental business, means that company will leave its high-profile showrooms for a new ­location, although its operations will continue.

The Harry the Hirer site purchased by Tim Gurner. Picture: Google Maps

The Melbourne-based developer is chasing sites along the eastern seaboard and beat a tight field of major rivals to the project late last year. The site has since been rezoned from its former industrial land use to permit a major mixed-use project.

Planning will allow for about 500 units and 9000sq m of commercial space, with the project spanning about five buildings of up 12 storeys, although some would be lower at about seven storeys.

Two heritage buildings on the land, the Russell Manufacturing Co, the former Repco building and the former Repco Offices and Laboratories would be partially retained.

Mr Gurner said the precinct marked another long-term, staged project and would be launched subject to market conditions.

“There’s a reason why we’re ramping up our acquisitions for the next five to 10 years,” he said. “I’m very confident in the Melbourne and Australian macro and micro position.”

Mr Gurner is betting that immigration will increase once the pandemic is beaten and people want to come to Australia, giving governments little choice but to open borders as soon as practicable. He expects them to chase both skilled and unskilled labour as shortages emerge and tips that many former expats will remain at home.

But he is not getting ahead of demand.

“Could you launch a project of 600 apartments tomorrow? No, you definitely wouldn’t. But can you in a year’s time? I think we definitely can. So, I think the fundamentals are looking good,” he said.

Mr Gurner warned that Melbourne apartment completions could crash from the pre-crisis level of about 16,000 a year to just 800 in 2024.

Melbourne developer Tim Gurner. Picture: Glenn Hampson

He pointed to the dire implications of emerging shortages in Melbourne, saying a significant private rental crisis and pricing crisis could emerge unless more stock is built.

Mr Gurner would not disclose the terms on the strategic sites at 81-95 Burnley Street, which are marked out by the “Harry’s blue” art deco exterior.

The 13,000sq m site can accommodate a major mixed-use precinct that would be worth more than $800m when finished after recently being rezoned by Victorian Planning Minister Richard Wynne.

The masterplan will see Mr Gurner deliver a combination of retail, serviced apartments, residential, office and a large community and art component in a nod to the area.

Multiple buildings would rise above a podium including retained heritage fabric and a local public open space and cultural area of about 575sq m.

It would have a laneway of eclectic retail and amenity offerings and more than 8000sq m of commercial and retail, including a state-of-the-art showroom space.

Of the more than 500 apartments, a luxury retirement offering and 10 per cent of dwellings allocated towards affordable housing are planned.

The site will pay homage to Richmond’s industrial past. Picture: NCA NewsWire / David Geraghty

The deal comes just weeks after Mr Gurner’s moves to redevelop the Jam Factory in South Yarra and the Gold Coast’s Budds Beach site.

“This is a landmark site in one of Melbourne’s most sought-after suburbs, Richmond,” Mr Gurner said.

“A prominent site like this, so close to Victoria Gardens Shopping Centre, requires a forward-thinking approach.

“Our vision for this site is so much more than just a residential precinct, but to become the true epicentre for Richmond complete with hospitality offerings, public spaces, high-quality retirement, mixed-use and retail.

“We have been fortunate to ­secure many prime sites over the past few years which have ­allowed us to explore larger precincts and place-making. This site is one of the largest we have ever acquired and will really allow us to create something truly special and be a truly self-sustaining village within a suburb.”