Luxury apartments to tower above Chapel Street's Jam Factory
Four luxury apartment towers – the highest rising 25 levels – will rise above Chapel Street’s famous Jam Factory as part of a new $1.5 billion proposal for the historical South Yarra retail landmark.
A planning application for the 1.8-hectare site on Melbourne’s best-known but struggling suburban shopping strip is expected to be lodged with the City of Stonnington this week.
It follows fund manager Newmark Capital, which paid $165 million six years ago for the 500 Chapel Street mall, selling part-ownership of the long-mooted project to Melbourne developer and Rich Lister Tim Gurner and his investment partner Qualitas.
A proposal submitted by Newmark in 2017 included a whopping 50,000 square metres of office space, but this has been cut by more than half to just 22,500 square metres to accommodate the four residential buildings and a five-star hotel with 180 keys.
Also included in the new plans for the precinct is a new public space in the form of a 1700 square metres, two-level plaza and amphitheatre featuring a large open staircase for events.
This will sit alongside three levels of retail and entertainment across 21,000 square metres including the existing cinema offering, which will be redeveloped, as part of the new design put together by architects Bates Smart.
A series of integrated laneways are included in the proposal based on the area’s original 1864 master plans for the precinct, when the distinctive red-brick building was built as the home of the Red Cross Preserving Company.
Two 25-level residential towers, one rising 17 levels and another 12 levels, will include more than 400 apartments, and two office buildings will rise 10 levels above Chapel Street.
Newmark Capital, headed by Chris Langford and Simon Morris, will deliver and retain ownership of the commercial and retail component of the Jam Factory, and Mr Gurner’s company and Qualitas will deliver the luxury residential and hotel component.
Mr Langford said the revised plans would revitalise the Jam Factory, which has been in decline as a retail destination for many years as the number of empty shops has increased on Chapel Street.
“The offices would be compellingly different, offering every amenity as part of a connected community,” Mr Langford said.
He said the Jam Factory’s heritage facade on Chapel Street, which has been degraded over time, would be restored to its original character.
Mr Gurner said the shared vision was to set the bar higher than any other residential project in Australia.
“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,” he said.
The project is expected to be launched in 2022 and completed in 2025.
“The Jam Factory revitalisation not only delivers on that but will ultimately deliver a new leading-edge mixed-use community in inner Melbourne,” said Mark Fischer, co-founder and global head of real estate at Qualitas.
