ELEVEN MONTHS after announcing a $700 million revamp of South Yarra’s iconic Jam Factory, the James Packer backed Challenger group, has put the property on the market for sale.
Challenger can expect to make about $110 million for the inner-city shopping centre, sources say, which is owned by two of its investment vehicles.
The Jam Factory has a prominent street frontage to retail mecca Chapel Street, and substantial redevelopment potential along Garden Street, on the southern border, and at the rear of the 1.9 hectare block.
According to the Property Council of Australia, the existing 20,155 square metre centre includes 990 car spaces, and includes two levels of offices on one level.
Last year, Challenger released images of a proposed new Jam Factory precinct, which would have seen the prominent red brick building demolished, and replaced with an array of high rise offices and apartment buildings, a hotel, and more than twice the amount of shops.
However plans for that development were never lodged with council.
Jones Lang LaSalle’s David Bowden and Simon Rooney are marketing the Jam Factory.
The sale announcement comes months after Challenger’s Hybrid Property Fund listed its 1940s art deco Rivoli Camberwell cinema for sale, in a deal expected to reap about $20 million.
Across the road from the Jam Factory earlier this week, the Association of Independent Schools of Victoria sold its outgoing head office at 20 Garden Street for $3.6 million, after paying $5.8 million for an art deco office building in West Melbourne.