Southbank precinct moving up in $470m revamp

Melbourne’s Southgate complex will be demolished to make way for a massive redevelopment expected to create thousands of jobs and transform the precinct.

Southgate will get a whole new look under the redevelopment.

A $470m redevelopment of Southgate will transform Southbank into a “world class” precinct after winning state government support.

New riverside parkland, restaurants, cafes and shops will be built in one of Melbourne’s most picturesque positions, in a move expected to create more than 3600 ongoing jobs.

Planning Minister Richard Wynne will announce approval on Wednesday of the major project, which the government believes will better link Southbank to the iconic arts and entertainment area.

The Southgate redevelopment will transform Southbank into a ‘world class’ precinct.

It will see 2000sq m of elevated publicly accessible open space created adjoining Hamer Hall and Southbank Promenade, directly connecting St Kilda Rd to the Melbourne Arts Precinct.

Mr Wynne said the revamp would help ensure Melbourne remained the nation’s cultural heartland and the popular precinct was reinvented.

“This redevelopment will bring new life to this much-loved part of Melbourne, providing a thriving new hub for retail and hospitality,’’ he said.

“The new-look Southgate will create a new destination for Melburnians and tourists – creating hundreds of local construction jobs and thousands of ongoing jobs once the project is complete.”

The development will feature new riverside parkland, restaurants, cafes and shops.

The existing three-level Southgate complex, opposite Flinders St Station, will be demolished to make way for the development by Singapore based property developer ARA.

In its place, a new five-story podium will be built on Southbank Promenade, as well as a 26-storey office building.

The project is expected to create 850 jobs each year during its construction, more accessible open space and better pedestrian links.

ARA Australia investments and asset management head Rohan Neville said it would be “a world-class precinct that enhances Melbourne’s positioning as one of the world’s most liveable cities”.

“With this announcement, we are able to build upon Southgate’s iconic status and unlock its untapped potential as well as revitalise the precinct; enabling tenants to thrive in a post-pandemic economy,’’ he said.

An artist’s impression of the new Southgate redevelopment.

The government believes the development will create up to $12m of public benefits, including more accessible open space and pedestrian link upgrades.

Planning scheme rules mean the development must have “minimal impact’’ to surrounding properties and public open space and no overshadowing of the Yarra River between 11am and 2pm.

The project was approved following consultation with the City of Melbourne, Heritage Victoria, the Transport Department, Melbourne Water and the Office of the Victorian Government Architect.