Government awards $2b Treasury Square contract

The Treasury Square site (with buildings, shaded white).

Three and a half years after shortlisting a group of 11 to two – the state government has awarded a contract to develop over railyards at the south east corner of Spring and Flinders streets, to Mirvac.

Treasury Square, beside 289 Wellington Parade South (centre) which recently sold.

The Sydney based developer beat out industry super fund backed Cbus Property for the 1.4 hectare holding.

It will now build a deck over Jolimont railyards, connected to Federation Square, two blocks away, before proceeding with what is expected to be three skyscrapers.

The land, once described by late Melbourne lord mayor Ron Walker as the city’s “front yard” was marketed as Treasury Square by Colliers’ John Marasco, Trent Hobart and Anna Cavar.

VicTrack, the owner, was represented by EY’s Richard Bowman.

Prominent corner to be developed

The proposed skyscrapers, of about 20 storeys, are expected over the next five years.

The tender suggested residential, hospitality and offices as development outcomes.

Any buildings will block the view lines the diagonally adjacent Harry Seidler designed 1 Spring St enjoys over East Melbourne and the south east suburbs (story continues below).

Their end value is expected could circle $2 billion on land worth c$500m – though some agents and valuers suspect these numbers, circulated when the tender campaign launched in 2019, well exceed upper levels.

Hub of activity at city’s south east tip

Elsewhere in the immediate area, Cbus recently replaced the ex-Mercure Hotel at 17 Spring St with a 33 level luxury apartment complex.

Last November meanwhile, fund manager Bayley Stuart paid $51.8m for a low rise office at 289 Wellington Parade, East Melbourne – neighbouring the Treasury Square block.

The land which separates Treasury Square from Federation Square is also earmarked for longer-term redevelopment; it was last on the radar in 2012 when the Napthine government launched a tender for a public/private partnership.

Plans were thwarted, sources said, by the proposed cost to build a deck over the railyards.

A major office is also set for land behind 1 Spring St.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of