Tim Gurner wants to make Melbourne’s Jam Factory into the country’s top luxury precinct

The ambitious entrepreneur is looking to transform Melbourne’s residential property scene with a ritzy makeover of the historic complex.

Gurner Group chairman Tim Gurner, chief operating officer of hospitality Peter Crinis and CEO Ahmed Fahour.

Property developer Tim Gurner has kicked off demolition works on part of Melbourne’s historic Jam Factory complex as he prepares to turn it into a high-end apartment and luxury complex.

His plans will see the part of the property knocked over to make way for an opulent collection of five towers, including what will become some of the city’s most expensive apartments.

Though the historic facade and other elements of the building will be restored to their former glory, the site works will change the face of the iconic site and come as the country experiences a surge of interest in top end residential projects.

The move comes as Mr Gurner has signalled a major push into hospitality by recruiting ex-Crown Resorts heavyweight Peter Crinis and flagging the launch of a new fund in the area.

Mr Gurner said the Jam Factory project was Melbourne’s “most important development site” and this would give confidence to luxury buyers, who he sees as bringing the city out of its doldrums.

“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,” he said.

Tim Gurner has kicked off demolition works on part of Melbourne’s historic Jam Factory complex.

The developer officially kicked off demolition at its 20,000sq m Jam Factory redevelopment, marking the beginning of works on one of the country’s most ambitious and transformative mixed-use precincts.

Gurner and joint venture partner Qualitas picked up the remaining 65 per cent interest in the site from Newmark Capital this year, after owning 35 per cent since 2021.

Heavy machinery arrived on-site this week for works to remove all non-heritage components across the 20,000sq m site, including the existing Village Cinema complex, which closed last week. Under the development scheme, the building’s iconic facade will be protected.

The start of works comes after a decade of failed attempts by rival developers to bring the project to fruition, and Mr Gurner is bullish about the site despite the gloom hanging over Melbourne’s residential market.

The new precinct will include 600 ultra-luxury residences over five landmark towers, offices, and expansive areas for luxury retail, bars and restaurants. There will be a Village Cinema and a Gold Class complex, with a five-star hotel operator in final negotiations for a large hotel, as well as a smaller boutique lifestyle hotel.

The historic Jam Factory was built in1858 and has been a brewery, a preserving and jam manufacturer, and a retail and cinema precinct that thrived in Chapel Street’s heyday. The apartments are designed on the same principles of some of New York’s top towers around Central Park, while offering a touch of the mansions in nearby Toorak.

An artists impression of the Gurner Group's plans for a $2.75bn redevelopment of the Jam Factory.

The Gurner operation is also expanding in hotels, tapping former Crown Sydney and Crown Hotels chief executive, Mr Crinis, as group chief operating officer of hospitality. He will join a number of ex-Crown staff Mr Gurner already has on staff.

The Crown veteran has experience across the country and was a short-lived business partner of troubled Sydney pub baron Jon Adgemis before he was paid out for a stake in that hospitality business as the two prepared to face off in court.

Gurner has a portfolio of Saint Haven and SAINT private clubs and hospitality venues, alongside ten hotels in its development pipeline, with the company eyeing a hotel-specific capital fund to launch in 2025 under its funds arm.

Mr Gurner said the appointment would help the company bolster its luxury customer experiences. “We will start with our Saint Haven and SAINT clubs,“ he said. “With over ten hotels in our pipeline, we will be launching a hotel fund in 2025 to take advantage of a dislocated market and our pipeline and experience.”

The Gurner operation wants to get a fund up to capitalise on improving conditions in luxury hotels and to help grow its overall portfolio that has an end value of about $14.6bn, spanning Melbourne, Sydney, Gold Coast and Adelaide, Brisbane and Port Douglas.