Australia's highest-performing retail precinct is getting bigger, with GPT breaking ground on a $170 million transformation designed to cement Melbourne Central as the city's premier dining, entertainment, and retail destination.

The GPT Group (GPT) has officially commenced construction on the $170 million expansion of Melbourne Central in partnership with construction company Maben and ARM Architects. The development will add approximately 7,800sqm of new retail space across levels 3 and 4, bringing Melbourne Central to approximately 63,000sqm of retail on completion.

The expansion will introduce Melbourne's first flagship Books Kinokuniya store, a large-format entertainment hub, new dining zones and more than 10 new food retailers. A temporary Books Kinokuniya concept store will open on level 2 ahead of the permanent flagship, which is expected to open in the first half of 2028.

Melbourne Central development interior render, GPT Group

Books Kinokuniya Australia Managing Director Satoshi Yada says Melbourne was a natural progression for the global retailer. "As a UNESCO City of Literature, we believe Melbourne's creative and literary culture aligns deeply with Kinokuniya's identity. As we explored opportunities in Victoria, Melbourne Central stood out in particular because of its unique and easily accessible location and its strong connection with younger audiences and contemporary lifestyles."

Melbourne Central currently records annual sales of more than $700 million, maintains 100% occupancy across 55,000 sq m, and attracts more than 55 million visitors each year. The redevelopment will position the precinct as an 18/7 extended trading-hour destination, supporting the growth of Melbourne's nighttime economy.

GPT Head of Retail Chris Barnett says the expansion builds on the centre's track record. "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. With Melbourne CBD retail sales exceeding $3.9 billion annually and consumers increasingly seeking out experience-led destinations, we are seeing strong demand for high-quality entertainment, leisure, and dining offerings in the city."

"The introduction of Melbourne's first flagship Books Kinokuniya store brings a unique point of difference to the city's retail landscape. Combined with premium entertainment and dining experiences, the development will unlock significant value and create an even more compelling destination for visitors to meet, shop, dine, and play in the heart of the city," Barnett adds.

Spanning two city blocks between Lonsdale and La Trobe Streets, Melbourne Central houses more than 260 retailers across five levels. The redevelopment is further complemented by the newly opened State Library Station, which launched in late 2025. Located adjacent to RMIT University, the precinct is well placed to capture demand from one of Melbourne's largest student populations.

The expansion is scheduled for completion in 2028.

Images: Supplied

Architecture & Design Team

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