Listed developer Mirvac will vie with super fund Cbus Property to develop the $2 billion Treasury Square mixed-use project at the eastern end of the Melbourne CBD, after the state government narrowed the shortlist to two preferred parties.

The prized site sits beside Flinders Street just above the rail yards and is controlled by state agency VicTrack. On one side it overlooks Treasury Gardens and state Parliament. On the other side, any prospective development would look out over the Yarra River and parkland beyond.