Lendlease to develop $1.7 billion Queen Victoria Market precinct

Lendlease has been announced as the City of Melbourne’s preferred development partner to transform the southern site of the iconic Queen Victoria Market precinct as part of the Council’s Renewal Program.

The $1.7 billion redevelopment of the 3.2-hectare site bordered by Franklin, Queen and Peel streets, is the largest urban renewal project undertaken by the City of Melbourne and will revitalise Melbourne’s famous landmark while paying homage to the site’s rich heritage.

The proposed scheme includes three new buildings to transform the site south of Queen Victoria Market’s car park, that will be known as Gurrowa Place – with Gurrowa meaning a place of exchange and interchange to the Wurundjeri Woi-wurrung People, the Traditional Custodians of the Country on which the Queen Victoria Market resides.

Diverse housing options will include around 560 apartments, delivered as build-to-rent residential apartments and affordable homes, plus a building dedicated to student accommodation with around 1,100 beds set to be developed by Scape.

Subject to planning and heritage approvals, Gurrowa Place will feature a next generation office building rising 28 levels that will add approximately 43,000sqm of new workplace.

Lendlease will also develop a number of components to be retained by the City of Melbourne. On the ground plane, a proposed 1.8-hectare public park which will be known as Market Square and create an inclusive space for the community to connect.

They will also restore the existing heritage Franklin Street Stores into a new retail village will add to the city’s hospitality culture and complement the Queen Victoria Market’s offering. A civic pavilion, known as the Queen's Corner Building, is envisaged to be the cornerstone of the precinct, while Lendlease will also develop a 220-space basement car park.

Lendlease is collaborating with the Wurundjeri Elders on the precinct’s design which draws inspiration from a time before Melbourne and will honour the site’s history, including the reintroduction of native plants that once existed on the site.

Lendlease has worked with NH Architecture, Kerstin Thompson Architects, 3XN Australia and Searle x Waldron Architecture, in conjunction with Openwork and McGregor Coxall, to conceptualise the proposed development scheme for the site.

The new precinct is striving for leading-edge sustainability by prioritising carbon reductions in materials, operation and construction, and creating urban habitats to support biodiversity via site greenery.

The all-electric commercial and residential buildings, powered by renewable electricity, will pursue carbon neutrality in operation, with the workplace targeting a 6 Star Green Star Buildings v1 Rev B rating, and the residential buildings targeting a 5 Star Green Star Buildings v1 Rev B rating.

The project is expected to generate in excess of $14 million of direct social investment through various employment, training and social enterprise initiatives and is expected to contribute more than $1 billion in value to Melbourne’s economy.

Subject to planning approval, construction of the precinct is anticipated to commence from early 2024 and be complete in 2028, with a focus to deliver the car park, Market Square and the Queen’s Corner Building as part of the earlier stages of the project.

Tom Mackellar, Managing Director of Development of Lendlease, said delivering the 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.

“The creation of Gurrowa Place begins the next chapter in the evolution of Queen Victoria Market," Mackellar says.

"It will celebrate the rich history of the place, while introducing new spaces for the community and a vibrant precinct that welcomes locals and visitors.

“Lendlease looks forward to working alongside the City of Melbourne, Scape and all project partners, and the community to deliver a reimagined precinct that preserves the heart and soul of this Melbourne landmark while ensuring it continues to thrive.”

City of Melbourne Lord Mayor Sally Capp said the landmark project is a strong sign of confidence in Melbourne as a destination for investment, workers, residents and visitors.

“This $1.7 billion project will deliver connected office space, student housing, affordable housing and more parking for market customers," Capp said.

“We know this investment will attract thousands of new residents, workers and visitors, all while boosting business for traders.

“We’re proud to partner with Lendlease to deliver on our commitment to secure the market’s future and maintain a focus on parking for traders and customers.”

Key facts – Southern Precinct

• Three buildings overlooking the iconic market precinct, Flagstaff Gardens and the CBD.
  • Tower 1 – 28 level next-generation sustainable office and retail
  • Tower 2 – around 560 residential apartments, including build-to-rent and 15 per cent affordable housing
  • Tower 3 – student accommodation featuring around 1,100 beds, delivered by Scape.
• Ground-floor activations, spaces for events, retail and dining, and laneways to explore.
• An underground car park with 220 spaces for market customers, and 300 spaces on weekends, beneath towers 1 and 2.
• Restored Franklin Street stores, to be retained by Council, to create a vibrant retail hub that complements the market’s unique offerings.
• Construction to commence in early 2024 and be delivered in stages over the next five years

Key facts – Market Square

• The Queen Victoria Market Master Plan sets out that the market’s open-air car park will be converted into Market Square – 1.8 hectares of new public open space.
• The Market Square Charter was developed in consultation with the community in 2019 to guide future design of the space.
• The City of Melbourne will lead the design, and manage Market Square, with Lendlease delivering the new space.
• The Queen’s Corner Building will support Market Square with public amenities and activations to draw people to the market.
• Community members will have a chance to have their say on the use and design of Market Square and the Queen’s Corner Building in the coming months.