A spectacularly appointed restaurant beneath Chapel Street with an omakase bar and an ex-Sokyo chef on the pass will open next month in South Yarra.

Yugen is the final piece of the puzzle at Capitol Grand, the luxury apartment building already home to Yugen Tea House and Omnia Bistro, all owned by Larry Kestelman's LK Hospitality.

Head chef Alex Yu, an alumnus of Chase Kojima, from hatted Sydney restaurant Sokyo, is set to elevate the standard of omakase dining in Melbourne. Yu describes himself as a "sashimi florist" for his platters of premium fish with floral arrangements.

Yugen's sushi chef is Samuel Chee (ex-Kisume and Nobu) while former Vue de Monde chef Stephen Nairn is the culinary director. After spending four years planning Yugen, he's buzzing at the prospect of seating diners.

Guests wanting the full sushi experience will have to vie for a spot at the six-seat omakase counter, carved from pink stone, although Nairn says Yugen's omakase won't be bound by tradition.

On the same mezzanine level, there are also tables at which to enjoy sushi platters or items from the main menu, plus a birdcage-inspired booth table called the Golden Orb, seating up to 10. This juts out over an a la carte dining area for 85 people below, where a menu mixing Asian influences will showcase dishes such as wagyu hotpot and scallops with green nahm jim.

Soaring six-metre stone walls with inset columns create the feeling of being in an underground aqueduct, particularly at the bar, over which hangs an enormous light sculpture by artist Jennifer Conroy Smith.

Yugen is set to open in mid-October at 605 Chapel Street, South Yarra.