This article is from the Australian Property Journal archive
A PARTNERSHIP of Newmark Capital, Tim Gurner and Qualitas are submitting updated plans for the $1.5 billion overhaul of inner Melbourne retail and entertainment complex the Jam Factory.
Office and residential towers, an ultra-luxury hotel and a new public realm will join a revitalised cinema complex on the 18,000 sqm South Yarra site.
Architects Bates Smart have been brought on for the design. The plans have been unveiled six months after Newmark Capital brought in developer Tim Gurner and real estate fund manager Qualitas to reinvigorate their plans on Chapel Street.
The proposed revised scheme is expected to be submitted to Stonnington council this week. The roll call of features include a new 1,700 sqm two-level plaza and amphitheatre, four luxury residential towers with over 400 ultra-luxury residences, a 5-star hotel totalling around 180 keys, and some 22,500 sqm of commercial floorspace.
Retention and redevelopment of the existing cinema will form part of the 21,000 sqm of retail, joined by a series of integrated laneways based on the area’s original 1864 master plans.
Newmark 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.
“The offices will be compellingly different to the other isolated buildings on the market. Here we are making a statement, creating an environment. It’s not just a building on Chapel Street, it’s got these features that make it more energetic, more vibrant and connected to its community,” Newmark Capital director Chris Langford said. Offices will include touchless services and large yet floor plates to reduce vertical movement.
Newmark Capital will deliver and retain ownership of the commercial and retail component, while Gurner and Qualitas will deliver the luxury residential and hotel component. Gurner received a $150 million equity commitment from Qualitas one year ago.
“Our joint aim is very clear and that is to create the best mixed-use precinct in the world, setting a new benchmark for what is possible,” Gurner said of the redevelopment.
“Our vision for the residential offerings is to set the bar higher than any other residential project in Australia. We will be taking cues from the luxury penthouses of New York and London and offering a level of customisation not seen before.”
Gurner’s $7 billion pipeline includes the freshly-submitted plans for a $1.25 billion luxury apartment, hotel and hospitality project on a Gold Coast site, while closer to South Yarra he is developing a luxury apartment and club project on a bluestone church in Prahran, and the ultra-luxe Saint Moritz project in St Kilda.
“Creating the ultra-luxury residences at St Moritz really opened our eyes to the depth of the luxury market and challenged us to create a project that had no equal – we are now ready to raise that bar again with the Jam Factory,” Gurner said.
“We are in early discussions with the world’s best hotel brands and will be running an international EOI in the coming months to lock in our hotel operator and unlock the incredible potential of the site.”
Newmark also owns the nearby Como Centre close by, which it bought from Mirvac in 2016 for $236.5 million. It has a track record of acquiring and repositioning commercial assets. Last year, it bought the David Jones menswear store in Melbourne’s CBD for $121 million with plans to reposition the Bourke Street Mall building.
