Queen Victoria Market to get $1.7bn led by Lendlease

Developer Lendlease is planning three towers, but traditional flats are out.

Developer Lendlease will lead a major revamp of Melbourne’s famed Queen Victoria Market precinct, with plans for a $1.7bn overhaul that will transform a block to the south of the iconic property.

The once run down part of the Victorian capital will be transformed with three new buildings that include affordable housing, build-to-rent residential apartments, offices and student housing.

Lendlease knocked out rival developer, Canadian group Brookfield, which had also chased the site, last year. The scale of the project grew after the site initially went to tender in 2021 with plans for about $500m worth of units.

The group will work with student accommodation group Scape of the student part of the project, bringing in the partner early under its new development model.

In a sign of the still tough times for mid-range build-to-sell units, the scheme will not include any traditional apartments. Lendlease is bullish about the site’s potential.

“Delivering this project is a once-in-a generation opportunity to be part of one of Melbourne’s most iconic and beloved landmarks that has been serving the people of Melbourne for the past 140 years,” Lendlease managing director of development Tom Mackellar said.

“This landmark project is a strong sign of confidence in Melbourne as a destination for investment, workers, residents and visitors,” City of Melbourne Lord Mayor Sally Capp said. “This $1.7bn project will deliver connected office space, student housing, affordable housing and more parking for market customers.”

Lendlease will lead a major revamp of Melbourne’s famed Queen Victoria Market precinct.

The 3.2ha site southern site of the Queen Victoria Market precinct, bordered by Franklin, Queen and Peel streets, is the largest urban renewal scheme by the City of Melbourne.

The three buildings are to be built on the site south of Queen Victoria Market’s car park, which will be known as Gurrowa Place – meaning a place of exchange and interchange to traditional custodians, the Wurundjeri Woi-wurrung people.

Gurrowa Place will feature a next-generation office tower rising 28 levels that will span about 43,000sq m of space, but the main focus is on diverse housing.

The development will have about 560 units as build-to-rent residential apartments and affordable homes and another 1,100-bed building for student accommodation handled by Scape.

Lendlease will also develop a 1.8ha park, known as Market Square, for the council, and restore the existing heritage Franklin Street Stores into a new retail village. A new 220-space basement car park is also planned.

Lendlease is working with NH Architecture, Kerstin Thompson Architects, 3XN Australia and Searle x Waldron Architecture, in conjunction with Openwork and McGregor Coxall, on the scheme.

Building on the precinct is anticipated to commence from early 2024 and be complete in 2028, with a focus to first deliver the car park, Market Square and the Queen’s Corner Building.