Huge apartment development near Queen Victoria Market hit by delays

A $1.7bn three tower development next to the Queen Victoria Market could be delayed by more than a year, after the developer asked Town Hall to defer its progress payments on the project.

The $1.7bn apartment development next to Queen Victoria Market could be delayed by a year or more as the developer behind the project has asked Town Hall to defer its progress payments on the project.

Lendlease was selected by the City of Melbourne to develop Gurrowa Place in 2023, which will include around 1700 new apartments in three towers, student accommodation and 80 affordable homes.

However, multiple council sources told the Herald Sun that Lendlease had requested delays to the payments it is required to make to the council as part of its development agreement.

“When a developer requests a delay like this, it can only mean the project isn’t going to hit its original timeline,” one source said.

“Given the complexity and scale of (Gurrowa Place) that delay is likely to be a year or more, rather than just a month or so.”

Lendlease did not answer questions posed by the Herald Sun on the company requesting the payment delay.

The $1.7bn apartment development next to the Queen Vic Market could be delayed by more than a year.

The council also refused to answer questions on the payment delay.

The project has received state approval but it is awaiting a federal review in relation to the proposed plan’s impacts on the national heritage values of the market. It was originally expected to be completed in the 2028 financial year.

In December last year, the National Trust expressed its objections to the construction of the three towers that comprise the Gurrowa Place development.

Last month, Lendlease announced to the stock exchange that it was divesting of international projects and selling its stake in local infrastructure business Capella Capital.

The $268m market renewal project – being led by the City of Melbourne – has also been beset by more delays, with a revised completion date now September 2027. The planning for the market redevelopment started in 2013.

Fruit and veg traders at the market went on strike for the first time in the market’s history last month. Picture: David Crosling

The latest delay comes as the fruit and vegetable traders went on strike last month, which was the first time in the market’s history.

Traders claim financial mismanagement by the council and market management, shifting costs on to traders and the ongoing construction work reducing the number of customers.

Lord Mayor Nick Reece said Queen Victoria Market traders were the heart of this iconic Melbourne institution and the council was doing everything to minimise the impact on traders during the renewal project.

“We’re delivering our vision to restore and transform the market precinct and attract thousands of new visitors, while protecting its heritage,” he said.

“Since 2017, we’ve provided around $3m in support and adapted our works to further reduce disruption to their businesses. We will continue to help traders apply for funding and rent relief, as well as with marketing support and business mentoring.”

“Work to improve the market experience has been backed by extensive consultation with traders and the wider community.”

Originally published as Huge apartment development near Queen Victoria Market hit by delays