The Jam Factory Reimagined: GURNER Unveils a $4 Billion Vision for Melbourne’s Next Cultural Landmark

A historic South Yarra icon is set for an ambitious transformation, with a vision that brings together luxury, dining, fashion, entertainment and culture in one extraordinary destination.

Melbourne’s iconic Jam Factory is preparing for a new chapter, and the ambition is bigger than a shopping destination. GURNER has unveiled a $4 billion vision to transform the landmark at 500 Chapel Street, South Yarra, into a vibrant cultural precinct designed to bring people together from morning to late into the night.

With construction already underway, the 20,000-square-metre site will retain its heritage red-brick façade while introducing a contemporary mix of hospitality, luxury retail, hotels, entertainment, wellness and public spaces. The vision draws inspiration from some of the world’s most celebrated urban destinations, while remaining rooted in Melbourne’s distinctive character.

A Melbourne Icon With a New Story to Tell

The Jam Factory’s history dates back to 1858, when the site was home to the Victoria Brewery. It later became associated with Sir Henry Jones’s IXL preserves before evolving into a familiar destination for cinema, fashion and dining.

For generations of Melburnians, it has been the backdrop to first dates, family dinners, birthday celebrations and movie premieres. Rather than erase that legacy, GURNER plans to weave it into the precinct’s future through a proposed Jam Factory Archive, featuring historical photographs, cinema memorabilia, stories and artefacts. The public will also be invited to contribute their own memories of the site.

Laneways, Long Lunches and Late Nights

At the heart of the redevelopment will be Village Square, a new public meeting place connecting to Chapel Street through Kirby Lane. Plans envision cobblestone laneways, mature landscaping, boutique retail, cafés, bakeries, florists, intimate restaurants and wine bars, creating a streetscape that feels more like an extension of South Yarra than a traditional enclosed shopping centre.

Food will be a major drawcard. A proposed Grand Food Hall, inspired by destinations including Harrods Food Hall, Eataly and La Grande Épicerie, could bring together fresh produce, seafood, specialist providores, bakeries, patisseries, flowers, restaurants and open kitchens under one roof.

After dark, the vision extends underground, with intimate dining spaces, cocktail bars, private rooms and live music venues being explored. A proposed heritage bar and small-batch brewing concept would also pay tribute to the site’s beginnings as the Victoria Brewery.

Cinema Glamour Returns

Film has long been part of the Jam Factory’s identity, and its future plans place cinema back in the spotlight. An eight-screen cinema complex and flagship premiere theatre are planned, with the ambition of bringing major Australian and international film premieres, festivals and red-carpet events back to South Yarra.

The precinct is also envisioned to include a private members’ club with lounges, dining, bars, screening spaces and event facilities, alongside a significant subterranean wellness destination currently being explored. Thermal bathing, saunas, recovery facilities, treatment rooms and pools form part of the wellness vision, while a landscaped rooftop with restaurants, bars, gardens and outdoor terraces would offer another way to experience the precinct.

Global Luxury, Melbourne Soul

Luxury will be another defining element. Rather than following the conventional shopping-centre model, the retail offering is intended to unfold through streets and arcades, bringing international fashion, jewellery, watches, beauty and lifestyle brands into an environment shaped by heritage architecture and hospitality.

Two hotels are planned: a four-star property and an international luxury hotel brand that has never previously operated in Australia. The luxury operator is expected to be announced in 2027.

Families will also have a place in the precinct’s future, with a dedicated luxury family and children's destination being explored, incorporating creative activities, cooking, education, entertainment and play.

A New Chapter for Chapel Street

The masterplan has been developed by GURNER Group alongside global architecture firm Skidmore, Owings & Merrill and Buchan. With construction commencing in January 2025, the redevelopment is positioned as a major private investment in Melbourne and a potential catalyst for the wider revival of Chapel Street.

A multi-day opening celebration is also envisioned, bringing together film premieres, fashion, food, live music, exhibitions and public performances.

If realised as planned, the new Jam Factory will be more than a place to shop. It will be a destination for dining, discovering, celebrating and spending time in the city — a new expression of Melbourne’s cultural life that honours its past while looking firmly towards the future.

The Jam Factory at a glance

• Location: 500 Chapel Street, South Yarra, Melbourne

• Vision: $4 billion mixed-use cultural and lifestyle precinct

• Site: 20,000 square metres

• Heritage: Established as the Victoria Brewery in 1858

• Hotels: Two planned, including an international luxury brand making its Australian debut

• Entertainment: New eight-screen cinema complex and planned premiere theatre

• Food and hospitality: Proposed Grand Food Hall, restaurants, bars and laneway dining

• Lifestyle: Luxury retail, wellness, members’ club and rooftop destination concepts

• Public spaces: Village Square, landscaped laneways and public art

Editorial note: Several elements remain proposed or under exploration as part of the masterplan. The luxury hotel operator is expected to be announced in 2027.

Source: GURNER Group announcement, 13 October 2026.