Developer Shortlist for VicRoads Kew Site Revealed

The shortlist of high-profile developers vying for a 500-home project in Melbourne’s inner east has been revealed.

Riverlee, Lendlease Development Pty Ltd, Mirvac Group and a Milieu-led consortium were all in contention for the Kew development.

Development Victoria invited the developers to participate in a request for proposal process for the large parcel of land at 60 Denmark Street.

The former VicRoads site was declared surplus by the Department of Transport and Planning, then rezoned from a transport zone to commercial and general residential zones in 2024.

The existing building on the south end of the site was expected to be adaptively reused.

At least 10 per cent of the new homes would be affordable and land preparation was slated to start this year, subject to approvals.

Development Victoria said it expected to announce the successful development partners for the mid-rise apartment buildings next year.

The development would be of similar height to the existing three office buildings of five to eight storeys that were built in the 1960s and ceased operations last year. 

The Victorian government indicated build-to-rent housing was “one way to deliver homes quickly as part of the project”.

An existing rail trail through the site was being considered as a potential shared pedestrian path, which was in line with community aspirations, Development Victoria said.

▲ One of the former VicRoads office buildings on the site at Kew.

Development Victoria acting executive general manager of housing Nemesia Kennett said there had been a strong response to the initial expressions of interest campaign. 

“Denmark Street, Kew presents a unique development opportunity, which has attracted high calibre developers, well qualified to transform the site,” Kennett said.

“We’re looking forward to seeing the shortlisted developers’ proposals and understanding how they will deliver the best outcomes for the community if successful.”

Kennett said they would continue to communicate with the Boroondara Council and the community during the transaction process.

An Engage Victoria survey showed there was overwhelming community support for the redevelopment, particularly if it celebrated heritage and created green spaces.