Work starts on major project next to Queen Victoria Market

Work on a major multimillion-dollar project next to the Queen Victoria Market, delivering a new hotel, apartments and laneways, has begun. But the future of the $250 million revamp of the market itself is still unclear.

Work has started on a major development next to Queen Victoria Market that will feature a hotel, community facilities, housing, laneways and carparking.

Melbourne City Council bought the so-called Munro site on Therry St for $76 million in 2014 to protect the market precinct from the possibility of big supermarkets and chain stores opening.

The $450 million project is separate from the $250 million redevelopment of the iconic market, which stalled last year after Heritage Victoria rejected major works involving refurbishment of old sheds and providing underground facilities and parking.

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Work has started on the Munro site redevelopment next to Queen Victoria Market.

A council meeting will consider next steps for the redevelopment next month.

The Munro site project involves a deal with developer PDG Corporation to deliver $70 million in facilities including a 120-place childcare centre, 56 affordable housing units, a community centre and kitchen and 500 basement car parks for market customers.

PDG will do its own development on the site comprising an apartment tower with 320 units and an 80-room hotel.

The Munro site project involves a deal with developer PDG Corporation to deliver $70 million in facilities.

Lord Mayor Sally Capp said the council was expecting about 24,000 extra residents in the area by 2040 so it was crucial to provide more community facilities and pedestrian-friendly places.

“We’re delivering a new network of interconnecting laneways featuring retail stores, cafes and restaurants. The popular street art precinct in Blender Lane will remain and the new community facilities will better connect the market precinct to the city,” she said.

Cr Capp said that the facade of the Mercat Cross Hotel on the corner of Therry and Queen streets will be retained, and its famous sign and balcony will be incorporated in the community facilities as a nod to the site’s history.

The Munro redevelopment will feature laneways, shops and cafes.

PDG managing director Vince Giuliano said the development was an ambitious plan by the City of Melbourne.

“The end result will be an exemplary mixed-use development that provides tremendous benefits to the community,” he said.

Project builder is Hamilton Marino.

It is expected the community facilities and basement carparking will be finished within two years.

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@JMasanauskas