With luxury property developer Gurner receiving an approval for redevelopment worth $1.5 billion of JJam Factory in Melbourne, the city is set to witness demand for more than 2,000 roles once the project is completed.

Gurner is reportedly partnering with real-estate investment managers Qualitas and Newmark Capital to redevelop the Jam Factory on Chapel Street, Melbourne, into a five-tower precinct composed of retail, residential, hotel and commercial elements.

The transformation is expected to create 2,282 full-time jobs and bring in $500 Mn from construction costs alone. The redevelopment will contain 400 luxury residences, up to 200 rooms as part of a five-star hotel, and an upgrade to the existing cinema.  

“We’ve been working closely with the project team, as well as council, to deliver something truly world-class – the redevelopment will put Chapel Street back on the map, not only as a retail hub but as a luxury travel and lifestyle destination as well,” Gurner CEO and founder Tim Gurner said.

“This will take everything we have learnt from projects like Hawksburn Place Residences and Saint Moritz and elevate it to a whole new level – this is something that will truly put South Yarra at the upper echelon of world luxury property. The team we have assembled for this ambitious project is in a league of its own, and we’re looking forward to commencing works on the site as soon as possible.”

Following the recent approval by the City of Stonnington, work is slated to commence soon, across more than 18,500sqm of retail space, 20,000sqm commercial office space, 1,195 parking bays and 7,000m of public realm and amenities for residents and locals.  

The luxury property in the making is expected to stimulate $800 Mn into the Victorian economy per annum. Workers and residents are expected to spend more than $28 Mn at the precinct annually, while hotel guests are projected to bring in more than $12 Mn every year.

"The overwhelming support for the project speaks to the blue-chip nature of the location, the world-class vision of the project team and the combined power of the joint venture. Our fund investment strategy places an unrelenting focus on the quality of our partners and quality of real estate, which gives us confidence this vision will soon become a reality,” Qualitas Global Head of Real estate and Co-Founder Mark Fischer said.

As per agreement, Newmark Capital will deliver and retain ownership of the commercial and retail component, while Gurner and Qualitas will provide the luxury residential and hotel component.

“It’s been rewarding working with Council and the local community to ensure the project proceeds to the benefit of all. The offices will offer every amenity within an ideally located and connected community,” Newmark Capital Managing Director Chris Langford said.

“With stunning views and large floor plates, they represent workplaces of the future. They will boast spectacular views back to the city and the bay and will hold a special place in the Melbourne skyline,” Langford added.

The underway redevelopment plan is another feather in the hat for Gurner in 2022. The luxury estate developer has several other upcoming projects this year with a $500 Mn development project in Nedlands Perth, a $300 Mn development in Geelong and a $120 Mn development project on the Gold Coast. 

Image credits: theurbandeveloper.com