Chapel Street gets fillip from Gurner with Jam Factor renaissance
The redevelopment of the Jam Factory on Chapel Street will now include between 550 and 650 apartments after Gurner and Qualitas have bought into Newmark Capital’s $1.4 billion redevelopment.
The Gurner-Qualitas partnership will reportedly tip in about $75 million of equity.
The partnership will acquire part-ownership of the iconic site, with the project to be jointly developed with Newmark.
Construction is expected to be completed in 2025 if works start next year.
Chapel Street’s forlorn Jam Factory was acquired by Newmark, led by Chris Langford and Simon Morris, for about $165 million in 2015 from Challenger.
Newmark's sale will see less commercial office space, and a 170 room hotel, in the proposal that updates the 20,000 square metre mall at 500 Chapel Street.
Langford told Nine Entertainment the project would reinvigorate the Chapel Street precinct.
"We have a strong belief in the area and the economy,” he said.
Newmark will retain the retail centre and new office tower, while Gurner and Qualitas will acquire the hotel portion along with having a share in the profits and revenues stemming from the apartments sales.
Mark Fischer, the global head of real estate at Qualitas, told Nine the real estate fundamentals of the location were “indisputable”.
“The deal provides the opportunity to bring together great real estate, nimble large-scale capital, and market-leading development capabilities,” he said.
The latest residential projects on Chapel St include 661 Chapel with 116 one, two, three and four-bedroom residences across 30 floors at the Yarra River end of the strip.
Gamuda Land’s 661 Chapel Street enjoys views of the river and Melbourne CBD.
The architecture firm, Bird de la Coeur, designed the compex winning the 2019 Good Design Awards in the category of commercial and residential architectural design.