‘Landmark’ transformation of central Melbourne unveiled

City of Melbourne has appointed Lendlease for the biggest mixed-use development in the council's history.

A 3.2-hectare precinct south of the Queen Victoria Market is set to become a three-tower complex with a 1.8-hectare park on the site of the market's existing car park.

The $1.7 billion development is enabled by the council's "landmark divestment of the Southern Precinct," with the funds reinvested in the market's renewal.

A collection of historic buildings on Franklin Street will also be refurbished into a new retail village, which will be retained by the council.

The redeveloped precinct, to be named Gurrowa Place, will comprise a 28-storey office tower, a residential tower with 560 units (including 15 percent affordable housing and built-to-rent apartments), and a student housing tower accommodating 1,100 beds.

A long civic pavilion, to be known as the Queen's Corner Building, will support the Market Square with public amenities and activations. The design of Market Square will be led by City of Melbourne.

"Gurrowa Place will enrich the traditional market offerings Melburnians and visitors know and love - attracting thousands of new residents, workers and visitors and boosting business for traders," said lord mayor Sally Capp. "This globally iconic precinct will be a place to celebrate - with spaces for events, world-class retail and new laneways and arcades to complement the beloved market experience."

The project team will consult with Wurundjeri elders on a precinct design that honours the site's precolonial history.

"The creation of Gurrowa Place begins the next chapter in the evolution of Queen Victoria Market," said Lendlease managing director of development Tom Mackellar. "It will celebrate the rich history of the place, while introducing new spaces for the community and a vibrant precinct that welcomes locals and visitors."

The team will also prioritize carbon reduction in materials and construction; the development is inteded to be carbon neutral in operation, using renewable electricity across all commercial and residential buildings.

Targets for the precinct include a 6-star Green Star rating for commercial spaces and a 5-star Green Star for residential buildings.

If approved, the project will begin in 2024 and be completed in 2028.