Australian real estate investment manager Qualitas and developer GURNER have acquired the remaining interest in what is known as the Jam Factory from Newmark Capital to take control of the Melbourne site.
The partners are injecting A$180m (€112m) in equity to settle on and develop a A$2.75bn mixed-use precinct of commercial, residential, hotels and amenities including Village Cinemas.
Qualitas will invest capital from its funds alongside additional capital to be raised from private and offshore institutional investors.
The revised ownership structure will allow the joint venture to phase the delivery of the project into smaller stages that can be built independently, which is important in a challenging construction environment, to de-risk the development site long-term, the partners said.
The Jam Factory redevelopment will anchor the transformation of Chapel Street, a shopping strip in Melbourne’s South Yarra to bring the energy back and reinvigorate it to become the iconic street it once so famously was, according to the new owners.
GURNER founder and executive chairman, Tim Gurner, said: “Building on the vision we created with Newmark, I truly believe this to be Melbourne’s most important and iconic regeneration site.
“We are very excited to be able to deliver this incredible project with our long-term strategic partner, Qualitas. We know that together we can revitalise this critical site for Melbourne.”
Qualitas global head of real estate and co-founder, Mark Fischer, said: “Our ability to provide flexible capital for this large project demonstrates our equity investment capabilities.”
Newmark spokesperson Chris Langford, added: “After 8 years of ownership, the decision to divest aligns with our commitment to deliver an outcome for our investors in the Newmark Jam Factory Property Trust.
“This sale provides a clear pathway forward and delivers investors certainty in an unpredictable market.”
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