Home Property Australia Green light for Lendlease’s $1.7b project at Melbourne’s Queen Victoria Market

Green light for Lendlease’s $1.7b project at Melbourne’s Queen Victoria Market

  • April 03, 2024
  • by Property Australia
An artist’s impression of the project

Lendlease’s has been given the green light to transform the southern site of the Queen Victoria Market (QVM) precinct.

Formal approval of Lendlease’s Development Application for Gurrowa Place follows execution of contracts between Lendlease, student accommodation provider Scape and the City of Melbourne for the major urban regeneration project which has an end development value of circa $1.7 billion.

Lendlease has also received planning permits for early works with construction expected to commence in the coming months, pending final approvals.

Tony Lombardo, Global CEO, Lendlease said the Gurrowa Place project represents an enormous opportunity to revitalise one of Melbourne’s most-loved precincts with new public space, retail, office and housing.

“With construction expected to commence in the coming months, we’ve commenced discussions with capital partners interested in working alongside Lendlease and our stakeholders to bring the project to life on behalf of Melburnians.

“Achieving the twin milestones of contract close and development plan approval underscores the significant momentum right across our Australian business, Lendlease’s traditional growth engine, as we replenish our local pipeline of development projects and repatriate capital from offshore.”

Gurrowa Place, which is part of the largest urban renewal project undertaken by the City of Melbourne, will revitalise the QVM precinct’s 3.2-hectare southern site, bordered by Franklin, Queen and Peel streets, with new commercial, residential, retail and public open space.

Across three new buildings, Gurrowa Place will feature a 28-storey next-generation workplace,  c. 560 build-to-rent apartments with c. 80 affordable homes, and c. 1,100 student residences to be managed by Scape.

The approved plan includes a 1.8-hectare public park which will be known as Market Square designed by the City of Melbourne in collaboration with Lendlease, and the restoration of the existing heritage Franklin Street Stores into a new retail village to complement the QVM offering.

A 220-space basement car park will also be delivered for visitors and traders.

Lendlease is acting as development and construction partner for the commercial and build-to-rent towers, with Scape acting as developer of the student accommodation.

Anouk Darling, CEO, Scape Australia said the group is continuing its investment in Melbourne as a global leader in the education sector.

“We are excited to partner with Lendlease and the City of Melbourne at Gurrowa Place.”

Sally Capp, Lord Mayor, City of Melbourne said the project is a “vote of confidence”.

“This $1.7 billion vote of confidence from Lendlease is Council’s most significant partnership with the private sector – which will create more than 4,000 jobs and secure the market’s future.”

The project is expected to be completed in FY28.