Melbourne CBD’s premier shopping precinct is set to be boosted by the $25 million revitalisation of 235 Bourke Street, which will see the refurbishment of the historic Tivoli Arcade.
Located on Bourke Street Mall, the premium redevelopment will also see an improved internal link between the mall and one of Melbourne’s iconic laneways, Rainbow Alley, activating a previously underutilised public thoroughfare.
Fender Katsalidis has been engaged by Futuro Capital to support the 38,000 square metre interior redevelopment of 235 Bourke Street’s entire ground floor plane, end-of-trip facility, typical level lobbies and amenities.
Transforming the mid-century tower into an A-grade commercial building, plans include the refurbishment of Tivoli Arcade, which will be integrated with the commercial lobby and invite high street retail and up-market food and beverage offerings to the site.
Slated for completion in 2023, the redevelopment is part of Futuro Capital’s three-year capital expenditure program to redevelop the building while it continues to be operational and the sitting tenant, RMIT, remains in the building.
Futuro Capital executive director Ben Hopkins says the development is expected to be fully leased prior to the end of construction.
“We have been working closely with architects Fender Katsalidis and Bates Smart to redevelop a new destination hub on Bourke Street to feature top quality retail and commercial users,” he says.
“We’re already seeing an extensive amount of enquiry from retail and food and beverage tenants, drawn to the building’s attractive location, the expansive new commercial entrance and the upmarket retail offering through Rainbow Alley.”
Fender Katsalidis principal Rosie Morley says the challenge set by Futuro to re-life the aged asset into a premium commercial destination presented a new opportunity to restore the cultural currency of a historically significant site.
235 Bourke Street is located on the former site of the Tivoli Theatre, from which the mid-century building’s ground floor arcade takes its name.
“We have embraced the laneway as an opportunity to increase connection with the ground floor plane through a physical linkage,” Ms Morley says.
“Our approach has been to strip back the layers of materiality which have been added over time to reveal more of the building’s existing structure. The intention is to celebrate this original character, and tie it into the fabric of Melbourne’s unique laneway DNA.”
Connections at various levels will be introduced with double-height volumes, including an outdoor terrace on the third floor.
Futuro Capital and partners Baring Private Equity Asia and SLB Development acquired 235 Bourke Street through two separate deals at a value of $206 million, with the second acquisition taking place in April 2021.
Designed in partnership with Bates Smart, who have tackled the building’s exterior, the project
complements the City of Melbourne’s plan to protect, respect and celebrate quality heritage architecture in the CBD.
Lord Mayor Sally Capp welcomed the project from Futuro Capital and Fender Katsalidis, saying it showed a huge vote of confidence in the future of the city centre.
“Melbourne’s architectural landscape is renowned the world over for our beautifully crafted buildings and inimitable laneways,” the Lord Mayor said.
“We’re not just a beautiful city, we are a prosperous city. As the engine room of Victoria, Melbourne city’s economy contributes a quarter of the Gross State Product. As we continue our sustained economic bounce back, it is thoughtful and quality additions to our CBD – such as this project at 235 Bourke Street – that maintain our reputation as the most liveable city in Australia.”
