Chemist Warehouse billionaires secure office tower approval
Chemist Warehouse’s billionaire owners have secured approval for a seven-storey office-based mixed-use building at one of Melbourne’s busiest corners.
In South Yarra, the site includes 600 Chapel Street, which a consortium including Jack and Sam Gance, Adriano, Marcello and Mario Verrocchi bought for $15 million in 2024.
On the south-east corner of Toorak Street, with a historic 521 square metre building for years occupied by National Australia Bank, that block spans 367 square metres.
Earlier this year, following an off-market deal, the ownership group added the neighbouring 592 Chapel St.
On 201 sqm also zoned Activity Centre, that property cost $4.8m.
Aston Commercial’s Zak Lewski and Fred Nucara were the agents.
Seven-storey plan
The just-approved development will add four levels to the existing commercial building, taking it to seven storeys.
The basement will be refit as a gym and operate around the clock.
The ground and first floor will remain retail-based.
Level two is expected to contain a food and drink premises, able to accommodate 35 patrons, trading between 6am-5pm.
The balance of the building will be offices, expected to be the base for NRG Property, a real estate investment arm of Chemist Warehouse owners, directed by ex-JLL agent Michael Spektor (continues below).
A 49 sqm billboard spanning levels four and five was removed from the plans, while a 31 sqm sign on the north-western side of the building was permitted, subject to illumination being restricted to between 6am and 11pm.
The heritage-protected facade will be retained and restored.
Stonnington Council supported the proposal, citing the potential for more intensive use of the site – considered to be at the most prominent intersection outside of the CBD and fringe.
The site sits within the Chapel Street North Commercial Precinct, which includes heritage-protected buildings dating from the late 19th and early 20th centuries.
End of an era
NAB has occupied the corner since 1951.
“We’re pleased to have been working closely with council, heritage and the local community on the journey to deliver a landmark development that will see the significant heritage building meticulously restored while providing world class retail, wellness and office accommodation in what we believe is now the corporate and cultural heart of Melbourne – South Yarra,” Mr Spektor said.
Elsewhere in the area, a consortium fronted by Gurner is replacing the Jam Factory with a mixed-use based complex with several buildings and an end-value over a billion dollars.
Bill McNee – who sold 600 Chapel St in 2024 – is also proposing an office and hotel on a site acquired earlier this year from Spotlight Group.
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