RetailLindsay SaundersThu 23 Jul 26
GPT Begins Work on $170m Melbourne Central Expansion
The GPT Group has begun construction on a $170-million expansion of Melbourne Central that will add 7800sq m of retail, dining and entertainment space to the CBD precinct.
The redevelopment will increase the centre's retail footprint to about 63,000sq m when completed in 2028.
GPT has appointed Maben as builder and ARM Architecture as design partner for the project, which will focus on levels three and four of the centre.
The expansion will include Melbourne's first flagship Books Kinokuniya store, a large-format entertainment venue, new dining areas and more than 10 additional food retailers.
Books Kinokuniya Australia managing director Satoshi Yada said the retailer had identified Melbourne as its next Australian growth market.
“As a UNESCO City of Literature, we believe Melbourne's creative and literary culture aligns deeply with Kinokuniya's identity,” Yada said.
The Japanese retailer plans to open a temporary concept store at Melbourne Central before its permanent flagship launches in the first half of 2028.
The project is one of the largest retail redevelopment commitments in Melbourne's CBD since the pandemic and comes as major landlords shift investment towards food, leisure and experience-led offerings.
Melbourne Central currently records annual sales exceeding $700 million and is fully leased across its existing 55,000sq m retail component.
The centre attracts more than 55 million visitors each year and spans two city blocks between La Trobe and Lonsdale streets.
GPT head of retail Chris Barnett said the redevelopment was designed to build on the centre's existing performance.
“Our Melbourne Central expansion will build on the centre's strong performance and reinforce its position as one of Australia's leading retail and lifestyle destinations,” Barnett said.
He said demand for entertainment and leisure uses in the CBD had strengthened as consumers increasingly sought destinations that combined shopping with dining and social experiences.
GPT said the redevelopment would reposition Melbourne Central as an “18/7” destination with extended trading activity beyond traditional retail hours.
The project is expected to benefit from the opening of the upgraded State Library Station, which became operational in late 2025 as part of the Metro Tunnel project.
Melbourne Central is also directly connected to one of Melbourne's largest tertiary education catchments, with RMIT University next to the centre.
