This article is from the Australian Property Journal archive
THE $1.7 billion transformation of land next to Melbourne’s Queen Victoria Market has been given the green light by the state government, paving the way for four new towers with build-to-rent, affordable, and student housing to be developed on the northern edge of the CBD.
Announced last year, the Gurrowa Place project is a partnership between Lendlease and the City of Melbourne and will see the property giant deliver three towers comprising around 560 build-to-rent apartments – with 80 to be affordable housing – and 28-storeys of offices, and student housing provider Scape to deliver an additional 1,100 beds for university students.
Open spaces, cycling paths, retail stores along the restored Franklin Street Stores, and a community and cultural space fronting Queen Street will also form part of the project. This includes a new 1.8-hectare park to be known as Market Square.
Early works will allow excavation to begin to create a 220-space car park in the basement of the project’s towers, to be used by visitors and traders.
Victoria Planning Minister Sonya Kilkenny said the development supports the Allan Labor Government’s Housing Statement target of building 800,000 new homes across the state over the next decade.
“Building more quality homes around places like the iconic Queen Victoria Market means more Victorians can benefit from our thriving, liveable and vibrant capital city, with thousands of jobs nearby,” Kilkenny said.
Melbourne Lord Mayor Sally Capp said, “Gurrowa Place will become home to thousands of new residents, attract more market customers and boost business for traders – while unlocking one of the largest open spaces in the CBD”.
“The $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.
Lendlease’s global CEO, Tony Lombardo said Lendlease had commenced discussions with capital partners interested in working alongside Lendlease and stakeholders on the project.
Anouk Darling, CEO of Scape Australia, said, “Scape continues our 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”.
Approval comes the same week that Aliro Group-backed build-to-rent platform Novus was given the go-ahead for a 215-apartment tower on a car park site in the St Kilda Road precinct that was previously slated for a luxury apartment development until Novus acquired it last year.
According to Charter Keck Cramer, Melbourne’s apartment market was incredibly weak throughout 2023, with just 2,600 apartments launched – the lowest level since 2009 and down 60% on 2022.
