In a landmark move for Melbourne’s luxury retail and lifestyle property sector, GURNER™ Group, in partnership with investment manager Qualitas, has lodged plans for the third and final stage of its $3.75 billion Jam Factory redevelopment — positioning the South Yarra site as one of Australia’s most significant mixed-use urban regeneration projects.
The new vision, designed by global architectural powerhouse Skidmore, Owings & Merrill (SOM) alongside Buchan and the GURNER™ Design House, represents a major evolution from the original masterplan. The revised concept replaces the previously approved commercial tower with a series of sculptural “fluted” buildings rising from the restored heritage façade — a design shift expected to further elevate the project’s international profile.
For retail property professionals, the significance lies not just in scale but in the repositioning of the Jam Factory as a next-generation, multi-sensory precinct that blends ultra-luxury residential, retail, commercial, and entertainment uses in a unified, experience-driven environment.
Originally built in 1858, the Jam Factory has seen over 160 years of evolution — from brewery, to jam production hub, to retail icon.
Demolition is already underway led by Mann Group. Once complete the entire Jam Factory site will be 20,000m2 or equivalent to the size of the MCG and will re-establish the site as a globally significant lifestyle and cultural destination.
Tim Gurner, Founder and Executive Chairman of GURNER™ Group, emphasised the project’s broader urban impact: “This incredible creation marks the most important period of our brand’s evolution as we take an Australian icon and recreate it into a new standard in global luxury. Our vision is to restore Chapel Street and South Yarra to its former glory as a hub of culture, fashion, and luxury.”
“Our vision is to restore Chapel Street and South Yarra to its former glory as a hub of culture, fashion, and luxury, and bring global relevance back to one of Melbourne’s most important suburbs.
“It’s been a privilege to work closely with Village Cinemas on their new landmark complex; the Village Roadshow team is so genuinely passionate about the Jam Factory and restoring it’s status as Melbourne’s most iconic entertainment precinct.”
Robert Kirby AO, Executive Chairman of Village Roadshow, echoed the sentiment: “This extraordinary reimagined $3b Jam Factory development is a unique opportunity to introduce a whole new generation of luxury cinema going. Our commitment is to create the best cinemas in the entire world.”
The Jam Factory redevelopment offers a compelling model of integrated precinct design, blending heritage restoration with high-end modern placemaking to redefine one of Melbourne’s most iconic urban assets.
Key components of the updated masterplan include:
The final Stage of The Jam Factory will seek to bring to life a vibrant, multi-sensory destination with the Stage Three amendments proposing:
- ‘Lovers Walk’, a curated retail and dining laneway pulsing through the precinct, lined with luxury brands and curated hospitality offerings of Melbourne’s best eateries, venues and bars
- A fully reimagined Village Cinemas experience that will help restore the Jam Factory’s legacy as the heartbeat of Chapel Street’s golden era – where movie premieres, fashion, and culture collide
- Major upgrades to the public realm, with increased building setbacks and 10% more sunlight across the precinct’s open-air spaces, enhancing its role as a central gathering point for the community
- The revitalisation of Garden Street, transforming a forgotten laneway into a key arrival point through new architectural treatments and improved site flow to create an engaging new façade for the precinct
- Previous building with a series of sophisticated ‘fluted’ forms, conceptualised by Skidmore, Owings & Merril (SOM)
- Restoration of the heritage façade along Chapel Street and reconstruction of the heritage chimney acting as a centrepiece of the central piazza
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