PDG seeks retail tenants for Munro site expansion at QVM

EXCLUSIVE

PDG Corporation is seeking tenants for the retail component of a mixed-use complex it is building at Melbourne’s Queen Victoria Market.

The 2000 square metre space will form the ground level at 91-111 Therry Street, part of a $450 million extension which also includes a childcare centre, community meeting spaces and event rooms.

A mid-rise, 110-suite hotel is set to be developed in the pocket.

A 38-storey, 490-unit build-to-rent tower – which PDG sold as an investment last June to Mirvac for $333.5m on a funds through basis – is earmarked too.

The QVM shopping precinct set to open at the end of next year will stretch west to Queen St – an intersection known as Munro’s Corner – and incorporate the façade of the Mercat Cross Hotel. The property is expected to be retained by council.

Artist’s impression of Munro’s Corner (the south east intersection of Queen and Therry streets) after the $450m mixed-use redevelopment.

The old Munro’s Corner

In a memorable deal six years ago, the Munro family – which owned the sites nestling into the south east corner of QVM since 1910 – sold them to the City of Melbourne despite council being the fourth highest bidder following a public marketing campaign.

At the time, the vendor said it was interested in protecting the historic market’s legacy.

The government also indicated it would acknowledge the vendor’s generosity with some kind of naming within the redevelopment.

The properties were previously acquired by James Munro who was licensed to sell Clement Bayard cars at a time motor vehicles were rising in popularity in Melbourne (story continues below).

Council apparently wanted to buy them 110 years ago, too.

In 1989, part of the family’s holding including a McDonald’s occupied restaurant fronting Elizabeth Street, was sold.

In 2014, it banked $76m from the City for the balance – 93-141 and 143-151 Therry St, 452-456 Queen St and part of 128-130 Franklin St.

The Munro family sold the site (shaded) to City of Melbourne for $76m in 2014. Council wasn’t the highest bidder, but the vendor wanted to protect the neighbouring Queen Victoria Market’s legacy.

The government later engaged PDG as joint venture partner – a deal which saw it sell part of the land for the residential building in exchange for constructing (and handing over ownership) of the public and retail zones.

The next Munro’s corner

Colliers International’s Jennifer Tai and Adam Lester are marketing the 91-111 Therry St retail space for PDG and Queen Victoria Market Pty Ltd (on behalf and in association with the City of Melbourne).

Some areas will be designed around a new laneway connecting Therry and Franklin streets and a 500-bay basement car park.

The hotel and residential tower will also directly access the shopping centre which, upon completion, will form a gateway to a seven hectare site.

QVM chief executive officer, Stan Liacos, said “The Munro development will expand and enhance the Market’s hospitality offerings to address an area of great new opportunity”.

“The addition of several new dining tenancies and niche retail will build on the vibrant authentic offering…by day and night”.

Aerial image of Queen Victoria Market showing Mirvac’s build-to-rent tower (centre-left).
Artist’s impression of the lower levels of Mirvac’s build-to-rent tower – under construction at the Munro site at Queen Victoria Market.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco