Tim Gurner to redevelop Melbourne’s Jam Factory site
Property magnate Tim Gurner’s deal signals a redevelopment of the famed Chapel Street site, including offices and apartments.
Property magnate Tim Gurner has struck his biggest ever deal, swooping on Melbourne landmark the Jam Factory for a project in league with owners Newmark Capital, in a scheme backed by investment house Qualitas.
They have unveiled a plan to redevelop the iconic South Yarra site into a $1.4bn-plus mixed use precinct capped by a landmark tower aimed at the top end of the residential market.
The play is the first equity allocation from Qualitas as part of its $150m equity commitment to Gurner’s build-to-sell pipeline.
The existing precinct plan will be redesigned into a mixed-use precinct with hotel, luxury residential, commercial, retail and hospitality elements.
The redevelopment of the site adds to Gurner’s extensive project pipeline, which has been bolstered by expansions in Queensland and Melbourne in the wake of the coronavirus crisis.
Once fully developed, the 19,250sq m site will include more than 20,000sq m of retail, 20,000sq m of commercial office space, a hospitality and entertainment precinct, a hotel and multiple ultra-luxury residential apartments.
The latest deal follows the announcement last year of a partnership between Gurner and real estate fund manager Qualitas, after the group confirmed $150m in equity from the Qualitas Real Estate Opportunity Fund 2, to undertake significant acquisitions.
The site was purchased by Newmark Capital in 2015 and a permit obtained for a commercial retail and office precinct.
“The Jam Factory is Melbourne’s last remaining significant inner-suburban regeneration site,” Mr Gurner said.
“We have the scale and location here to do something that is not possible on any other site in Melbourne,” Mr Gurner said. “The destination will be highly sought after by astute owner-occupiers who understand the prestige and lifestyle afforded by the location.”
Newmark’s joint managing director Chris Langford said he was delighted to be working in partnership with Gurner.
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