A new development above Panama Dining Room in Smith Street Melbourne will be the first in the historically low-rise area to develop upwards, taking care for building activity not to impact the existing heritage.

The rooftop extension will feature 15 apartments which were designed by MAA, Neometro, and Grant Amon architects who will use materials that will make the building sustainable.

Double glazing throughout, water tanks, solar power and a zinc exterior will be the main sustainable features.

Panama Dining Room in historic low-rise Fitzroy

As to how the new structure will be incorporated into the historic building and former sex shop, Neometro director James Tutton told The Age “You can have a beautiful heritage building and a very contemporary structure on top.”

''From then on up it’s just a lightweight, Hebel structure, that's structurally and acoustically sound.''

The building is set to take place whilst residents continue to live in the building and the restaurants’ Panama Dining Room and Rice Queen will also be operating normally.

The construction is scheduled to take a year to complete and will cost $15 million dollars. 12 apartment have already been sold for between $450 000 and $650 000.