The City of Melbourne is moving to divest a large parcel of CBD land as part of its renewal effort around Queen Victoria Market, creating the opportunity for a $500 million-plus mixed-use development.

The so-called “Southern Site”, a massive 11,892 square metre plot, will be created by the realignment of Franklin Street bordering the market and a row of historic stores. Under an agreement with the state government, the land parcel is being handed over to the town hall, with revenue raised from its sale to be directed into the market revamp.