GPT begins construction on Melbourne Central’s $170 million transformation

Australia’s best performing retail precinct set to drive significant growth of the nighttime economy in the heart of Melbourne

August 1, 2026 -- The GPT Group (GPT) has officially commenced construction on its $170m expansion at Melbourne Central, set to deliver a major new dining, entertainment and retail offering that will strengthen its position as Australia’s most productive retail hub.

Partnering with construction company Maben and ARM Architects, GPT will deliver approximately 7,800sqm of additional retail space across levels 3 and 4, bringing Melbourne Central to approximately 63,000sqm of retail once the development is complete.

The expansion will feature Melbourne’s first flagship Books Kinokuniya store, alongside a large-format entertainment hub, new dining zones and more than 10 new food retailers.

Satoshi Yada, Managing Director of Books Kinokuniya Australia, said Melbourne was a natural next chapter for the 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 lifestyle.”

The global retailer will establish a temporary concept store on Level 2 ahead of the opening of its permanent flagship store in the first half of 2028.

This redevelopment reflects GPT’s strategic focus on developing its existing retail centres, creating high-performing destinations that respond to evolving customer demand and support long-term growth.

Melbourne Central currently achieves record annual sales of more than $700 million and maintains 100% occupancy across 55,000sqm.

Attracting more than 55 million visitors each year, the flagship CBD centre will be reimagined as an 18/7 extended trading hour destination, supporting the continued growth of Melbourne’s vibrant nighttime economy.

Chris Barnett, Head of Retail at The GPT Group, said, “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,” says Barnett.

Spanning two city blocks between Lonsdale and La Trobe Streets, Melbourne Central is home to more than 260 retailers across five levels, including a variety of existing food retailers and popular after hours dining and entertainment offerings.

The redevelopment is further complemented by the new and improved State Library Station, which officially opened in late 2025.

Located adjacent to RMIT University, Melbourne Central is also uniquely positioned to capture demand from one of Melbourne’s largest student populations, enhancing the anticipated appeal of the revitalised space.

The expansion is scheduled to be completed in 2028.

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