The Jam Factory
A former shopping and entertainment centre on Chapel Street in South Yarra, Melbourne, developed on the site of a historic preserving and jam-manufacturing complex.
Last updated August 25, 2026
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Overview
The Jam Factory was a shopping and entertainment centre in South Yarra, Melbourne, Australia. Its name referred to the site's long industrial history as a food-preserving and jam-production facility, rather than to a contemporary packaged-food brand. The property stood on Chapel Street and combined retail, dining, cinema and entertainment uses with retained historic industrial buildings. The site began as the Victorian Brewery in 1858. After the brewery closed in 1876, Robert Wright and Robert Payne acquired the buildings and land and established the Victoria Preserving Company. The operation was later known as the Red Cross preserving company and became a significant local employer during the fruit season. In 1895, William Peacock converted the premises into the OK Jam Co and subsequently sold it to Henry Jones IXL. Jam production continued there until 1970, making the location an important part of Melbourne's manufacturing and food-processing history. After the industrial use ended, the property was redeveloped at a reported cost of $20 million and reopened on 9 October 1979 as The Jam Factory shopping centre. Its early retail offer included fashion, gifts, cafés and a Georges department store. A further redevelopment in 1995 changed the tenant mix and introduced Village Cinemas to the upper level. Over time, the centre became associated with a succession of major Australian retail and entertainment tenants, including Borders, Virgin Megastore, Sanity and Urban by Target. Borders opened its first Australian store at the centre in 1998, while Brazin selected the site for the return of Virgin Megastores to Australia in 2002. The centre also became the subject of several redevelopment proposals. In 2008, owner Challenger announced a proposed $700 million transformation involving a substantially enlarged shopping centre, apartment towers, offices and a hotel. The plan did not proceed. Challenger subsequently sought to sell the property in 2009 for approximately $110 million, but the sale was unsuccessful. Newmark Capital acquired the Jam Factory in 2015 and owned the site until its remaining interest was sold in early 2024. The 2024 transaction transferred ownership and development control to a joint venture between Gurner Group and Qualitas. The partnership announced a proposed $2.75 billion mixed-use redevelopment featuring luxury residences, two hotels, a wellness precinct and a rebuilt cinema and dining complex. Village Cinemas announced in November 2024 that its Jam Factory cinema would close. The centre and cinema closed the following month as preparations advanced for the proposed reconstruction. The original centre therefore ended its retail and entertainment operations in December 2024, while the wider property entered a demolition and redevelopment phase. A fire was reported at the under-construction site on 19 September 2025, affecting approximately one-third of a remaining three-storey brick building on the Garden Street side. The incident was reported as being investigated by Victoria Police and the Arson Squad. The Jam Factory name remains associated with the historic site and its proposed replacement precinct, but the former operating shopping centre is no longer open.
History
The property now associated with The Jam Factory has been used for industrial, commercial and entertainment purposes over more than a century and a half. It was established as the Victorian Brewery in 1858, when the site reportedly had a value of £150. The brewery closed in 1876. In the same year, Robert Wright and Robert Payne purchased the buildings and land and founded the Victoria Preserving Company. The preserving operation became known as the Red Cross preserving company by 1880. During the fruit season it employed approximately 230 people, making it the largest employer in Prahran at that time. William Peacock acquired the premises in 1895 and converted the operation into the OK Jam Co. He later sold the business to Henry Jones IXL, under which jam manufacture continued until 1970. This industrial period gave the site its enduring Jam Factory identity. Following the end of food production, the property was converted into a major retail destination. A $20 million redevelopment produced a shopping centre that opened on 9 October 1979. The centre offered fashion, gifts, cafés and other urban retail services, and included a Georges store among its early tenants. In 1995 it underwent another redevelopment, after which Village Cinemas occupied space on the upper level and the tenant composition changed substantially. The centre's later history reflected shifts in Australian retail and entertainment. Borders opened its first Australian shop at The Jam Factory in 1998. That store closed in 2011 when Borders' regional parent, REDgroup Retail, entered administration and the chain collapsed. Brazin used the site for the first Australian reintroduction of Virgin Megastores in 2002. The Virgin outlet was closed by Sanity in 2010, and the space was subsequently occupied by Australia's first Urban by Target store. Ownership and redevelopment plans repeatedly shaped the property's trajectory. Challenger announced a $700 million redevelopment in June 2008. The proposal envisaged demolishing the historic factory building, creating a 54,000-square-metre shopping centre, adding apartment towers on part of the car park, constructing 8,000 square metres of office space and building a 100-room hotel. The scheme did not proceed. Challenger tried to sell the property in May 2009 for around $110 million, without success. Newmark Capital purchased the Jam Factory in 2015. In early 2024, Newmark Capital sold its remaining stake to a joint venture formed by Gurner Group and Qualitas. The new owners and developers announced a $2.75 billion project with luxury residences, two hotels, a wellness precinct and a redesigned cinema and dining complex. Tim Gurner and Mark Fischer were identified with the partnership. Ahmed Fahour, formerly chief executive of Australia Post, was appointed Group CEO of Gurner Group in late 2024 to oversee the group's expansion. Village Cinemas announced in November 2024 that its Jam Factory location would close. The cinema and the wider centre closed in December 2024 in preparation for a complete rebuild. The proposed replacement was intended to retain or reinterpret the site's entertainment role through a new cinema and dining complex while adding residential, hotel and wellness uses. On 19 September 2025, a fire broke out at the site while demolition and construction activity was under way. The blaze engulfed approximately one-third of a three-storey brick building that remained on the Garden Street side of the historic property. The incident was reported as under investigation by Victoria Police and the Arson Squad. The former shopping centre is consequently best treated as a closed or defunct operating venue, while its broader site remains subject to redevelopment.
- 2025
Fire reported during redevelopment
[1]A fire damaged part of a remaining historic brick building while demolition and construction work were active.
- 2024
Gurner Group and Qualitas announce replacement precinct
[1]The new ownership partnership announced a proposed $2.75 billion redevelopment and the existing centre closed in December.
- 2015
Newmark Capital becomes owner
[1]Newmark Capital purchased the property.
- 2008
Large-scale redevelopment proposed
[1]Challenger announced a proposed $700 million redevelopment, which ultimately did not proceed.
- 2002
Virgin Megastores returns to Australia
[1]Brazin selected the centre as the first Australian location for the reintroduced Virgin Megastores format.
- 1998
First Australian Borders store opens
[1]Borders opened its first Australian store at The Jam Factory.
- 1995
Second major redevelopment
[1]The centre was redeveloped again, with Village Cinemas later occupying the upper level.
- 1979
Shopping centre opens
[1]After a reported $20 million redevelopment, The Jam Factory opened as a shopping centre on 9 October.
- 1970
Jam production ends
[1]Manufacturing by Henry Jones IXL ceased after decades of jam production.
- 1895
OK Jam Co begins operating at the site
[1]William Peacock converted the premises into the OK Jam Co and later sold it to Henry Jones IXL.
Products and positioning
A heritage-linked urban shopping and entertainment destination serving Melbourne's inner-south, combining retail, food, cinema and adaptive reuse of a former industrial site.
Fashion, gifts and specialty retail · 1979
Shopping centre retail
The centre's principal retail offer included fashion stores, gift shops, cafés and other specialty retailers. Georges was among its notable early tenants, while later changes reflected the evolution of Australian shopping-centre retail. The retail component operated alongside cinema and dining uses rather than as a standalone department store.
Cinema and film exhibition · 1995
Village Cinemas
Village Cinemas operated the centre's upstairs cinema venue after the 1995 redevelopment. The cinema formed a major part of The Jam Factory's entertainment identity and continued until its announced closure in late 2024, when the centre entered a redevelopment-led shutdown.
Books and media retail · 1998
Borders
The Jam Factory hosted the first Borders store in Australia, opening in 1998. The outlet later closed as Borders and its regional parent REDgroup Retail entered administration and the chain ceased operating in Australia.
Music and media retail · 2002
Virgin Megastore
Brazin selected The Jam Factory for the first Australian site in its effort to reintroduce the Virgin Megastore format in 2002. The outlet later closed, and the space was taken by Urban by Target.
Brand decisions
2024
Ownership transfers to Gurner Group–Qualitas joint ventureM&ABackground
Newmark Capital sold its remaining interest as the property moved from operating shopping-centre use toward a comprehensive mixed-use redevelopment.
Action taken
Gurner Group and Qualitas became the sole owners and developers and announced plans for residences, hotels, wellness facilities, dining and a new cinema.
Aftermath
The existing centre and Village Cinemas venue closed in December 2024 to enable the proposed rebuild.
Proposed redevelopment cost. $2.75 billion proposed (2024)
2008
Proposed comprehensive redevelopmentStrategyBackground
Challenger sought to reposition the site through a major expansion that would have replaced the existing centre with a larger mixed-use complex.
Action taken
The announced concept included 54,000 square metres of shops, apartment towers, 8,000 square metres of offices and a 100-room hotel, alongside demolition of the historic factory building.
Aftermath
The proposal did not proceed, and Challenger later attempted to sell the property.
Proposed redevelopment cost. $700 million proposed (2008)
Sources2 sources
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