V-Leader and Ironside broke ground this week on 189 Toorak Road in South Yarra, marking a significant milestone in the transformation of the Victorian landmark.

Designed by Skidmore, Owings & Merrill (SOM), the project will transform the South Yarra Coffee Palace into a new, mixed-use development that honours its 137-year legacy while introducing contemporary elements.

Constructed in 1887 as one of Melbourne’s ornate coffee palaces from the temperance movement, the building was later transformed into the Hotel Claremont.

The redevelopment will preserve this heritage, revitalising the building with 2,500 square meters of retail and wellness space on the lower levels and a new office expansion above.
SOM’s design will restore the building’s 19th-century facade, rising 26 meters, and integrate a contemporary 12-story addition.

The lower floors will feature 2,000 square meters of retail and hospitality spaces, while the upper floors will cater to wellness-focused tenants. V-Leader aims to address a gap in contemporary office options for smaller buildings, such as private family offices in outdated structures.

This project exemplifies SOM’s expertise in sensitive heritage redevelopment, as demonstrated by recent renovations of New York’s Lever House and Moynihan Station.

SOM’s approach integrates historic preservation with modern design, creating meaningful connections to both history and place.

"Designing 189 Toorak Road was as much an exercise in reduction as it was in addition," says SOM Partner Scott Duncan.

"The undulating forms that float above the historic building reflect a sustainable approach, made possible through cutting-edge structural engineering, where materials are reduced to the bare essentials."

In contrast to the original facade, the expansion features an expressive concrete lattice structure, framing floor-to-ceiling glass bays. Rising above the original building, cascading terraces offer expansive outdoor spaces on the upper floors, providing tenants with access to fresh air and sweeping views.

The design includes an efficient concrete frame and an integrated facade system that minimises material use and reduces embodied carbon.

On the eastern side facing Claremont Street, an expressive green wall wraps the extension, adorned with plantings that highlight the contrast between the old and new.

"We are excited to breathe new life into 189 Toorak Road, a site with deep historical significance in South Yarra," says V-Leader Managing Director Andy Zhang.

"With SOM’s expertise and Ironside as our building partner, we are confident this development will set a new standard for commercial spaces in Melbourne."

The expanded building maintains the low-rise character of Toorak Road while stepping up to align with the greater density and height of the nearby Forrest Hill Precinct. The top of the building recedes from view along Toorak Road, allowing the Victorian facade to remain prominent.

The project, which has already secured pre-leases for 80% of its net lettable area (NLA), is slated for completion in the third quarter of 2025.

Clémence Carayol

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