Toorak Village: More than 20 arcade traders forced out for VicLand’s $250m redevelopment

A developer has dumped devastating news on fuming traders in one of Melbourne’s most exclusive shopping arcades as lockdown ended.

An artist's impression of the $250 million Toorak Village development fast tracked by the state government.

A group of traders in one of Melbourne’s most exclusive shopping precincts are being kicked out to make way for a massive upgrade — just as they started to get back on their feet following the coronavirus outbreak.

And some claim the eight-storey, $250 million revitalisation of Toorak Village will leave them hundreds of thousands of dollars out of pocket.

More than 20 shops and offices will be demolished for the project, which was one of several given fast-tracked planning approval by the State Government to help the state’s economic recovery.

The affected area at 489-505 Toorak Rd includes the Village Walk and Village Way arcades, bought by developer Bill McNee of VicLand Property Group last year.
Its shops include Haigh’s Chocolates, Toorak Fine Watches, N&T Cafe and several fashion outlets.

Leader understands VicLand Property Group issued exit notices to affected traders in mid-October, giving them six months to leave before demolition begins in late April 2021.

One trader claimed they were offered compensation of two months’ rent if they packed up early and left by the end of December.

A handful of empty shops could be found in each arcade when Leader visited on Wednesday, December 16.

N&T Cafe co-owner Mohammad Razzaghi said he had to leave despite having 10 years left on his lease, with the move costing him $500,000 in investments.

He said he had to fork out the cash to establish a new location for the cafe on Toorak Rd or risk losing his visa.

“I came here in 2017 from Iran and paid $300,000 for the spot, and I get this notice saying you have to go and I lose everything,” Mr Razzaghi said.

“When I came from Iran, I think this country would be something different, but now this issue totally disappointed me.”

Fellow trader Mohammad Dashti is closing his craft and jewellery shop, Mayan, at the end of the month and moving to a new home in Hawksburn.

“It’s really sad, it was a tough year, and this on top made it even more difficult,” he said.

“And now when I’ve settled in and got my customers and a good business now, I’ve got to move out.”

Toorak Village traders association president Tony Fialides said while it was sad to see the arcade traders go, he supported the new development and felt it would revitalise the strip.

“I don’t like to see any business go, but it’s inevitable … it’s all part and parcel when you lease a shop,” he said.

“I think we’re very fortunate here in Toorak that we have room for development, because I think that’s very necessary.”

VicLand and Stonnington Council were contacted for comment.