This article is from the Australian Property Journal archive
PROLIFIC developer Tim Gurner and Qualitas have bought out Newmark Capital’s, headed by AFL legend Chris Langford, interest in the $2.75 billion Jam Factory development.
Gurner and Qualitas will invest $180 million to settle on and develop the mixed-use precinct, becoming the sole owners of the 20,000 sqm site in South Yarra.
Gurner and Qualitas plan to create a world-leading mixed-use precinct with around 15,000 sqm of commercial office, over 20,000 sqm of retail, Village Cinemas, a large wellness precinct, two hotels and ultra luxury residential towers.
Executive chairman Tim Gurner said the revised ownership structure will allow the joint venture to phase the delivery of the project into smaller stages that are able to be built independently, which is important in this challenging construction environment, to de-risk the development site long-term.
“With this transaction now finalised we can turn our attention to fast-tracking construction and making this city-shaping redevelopment happen. We’ll breathe new life into the site and deliver our signature level of amenity, service and residences alongside world class retail and commercial.
“The retail, hospitality, hotels and commercial creation is what is most exciting about this site to be able to bring back an icon to Melbourne’s entertainment and shopping heart land with world class operators and brands.
“We’ll be taking all our learnings from the likes of Saint Moritz and Hawksburn Place and delivering custom ultra luxury high-end residences, with a real focus on home and warmth,” Gurner added.
Langford’s Newmark entered into a partnership with Gurner and Qualitas in 2021. The group acquired the complex in 2015 for $165 million, and in 2017 revealed plans for a comprehensive development dominated by 50,000 sqm of new office space across multiple buildings, and redevelopment of the retail, cinema and food and beverage complex.
Langford said after 8 years of ownership, the decision to divest aligns with its commitment of delivering an outcome for investors in the Newmark Jam Factory Property Trust.
“This sale provides a clear pathway forward and delivers investors with certainty in an unpredictable market. We look forward to GURNER and Qualitas consolidating the vision for the site that we have collaborated on.” he added.
“It’s great to be partnering with GURNER on this project as we look to deliver on the world class vision that the project team has set for the Jam Factory redevelopment,” said Qualitas global head of real estate and co-founder Mark Fischer.
“Our ability to provide flexible capital for this large project demonstrates our equity investment capabilities.” Fischer said.
Meanwhile the team are working with Stonnington Council to ensure approval of the Stage One scheme within months, to allow demolition and construction of stage 1 to start at the beginning of 2025 and the entire project to have commenced construction by the end of 2025.
The ultra luxury residences are expected to start from $750,000 and range up to $30 million+ for the penthouses, with the four buildings each targeting a specific segment of the market.
