Victoria’s planning minister Sonya Kilkenny has approved Lendlease’s $1.7-billion project at the Queen Victoria Markets in Melbourne.
Lendlease submitted two applications to the Victorian Department of Transport and Planning—one for the project itself and the other for early works on the site.
Early works are now able to proceed and construction is expected to start within the next few months.
“With construction expected to commence in the coming months, we’ve begun discussions with capital partners interested in working alongside Lendlease and our stakeholders to bring the project to life on behalf of Melburnians,” Lendlease global chief executive Tony Lombardo said.
The project, Gurrowa Place, will include commercial, residential, retail and public open space across a 3.2ha site to the south of the Queen Victoria Markets.
There will be three buildings comprising a 28-storey office building, 560 build-to-rent apartments, 80 affordable homes and 1100 student accommodation apartments.
Franklin Road will be realigned as part of the project and the current Queen Victoria Markets’ car park turned into a 1.8ha public open space, Market Square.
There will be a 220-space basement car park underneath Market Square for visitors and traders.
Wurundjeri elders were consulted throughout the process due to the site’s history as a cultural site for First Nations people.
Prior to the Victorian planning department approval, the application was referred to Heritage Victoria as the Franklin Street Stores are heritage listed and will be incorporated into the project’s design.
There was also consideration made for the historical cemetery on the Queen Victoria Markets site.
The application was then referred to the City of Melbourne, which voted to support the proposal.
Lendlease exchanged contracts officially with the City of Melbourne and student accommodation provider Scape mid-March.
“This $1.7-billion vote of confidence from Lendlease is the council’s most significant partnership with the private sector [and] will create more than 4000 jobs and secure the market’s future,” City of Melbourne lord mayor Sally Capp said.
“Gurrowa Place will become home to thousands of new residents, attract more market customers and boost business for traders while unlocking one of the largest open spaces in the CBD.”
Completion of the project is expected in 2028.
Lombardo said that the company was keen to get started on the project and move capital from overseas projects to domestic projects.
“Achieving the twin milestones of contract close and development plan approval underscores the significant momentum right across our Australian business, Lendlease’s traditional growth engine, as we replenish our local pipeline of development projects and repatriate capital from offshore,” Lombardo said.
Kilkenny sees the project as an important move to address the housing supply crisis.
“Building more quality homes around places like the iconic Queen Victoria Market means more Victorians can benefit from our thriving, liveable and vibrant capital city, with thousands of jobs nearby,” Kilkenny said.
