Melbourne Central Shopping Centre - History

History

Contained underneath the shopping centre's massive glass cone sits the Coop's Shot Tower which was built on the site in 1888. After last being used in 1961, the tower was retained to become a focal-point of the centre, R.M. Williams and the Shot Tower Museum now take up the inside of it. The tower was also featured in the opening sequence of the 1997 Jackie Chan film Mr. Nice Guy.

The Melbourne Central shopping and office development was designed by Japanese architect Kisho Kurokawa in the Metabolist style, and constructed between 1986 and 1991 by Japanese firm Kumagai Gumi at a cost of $1.2 billion. The original anchor tenant was the Japanese department store Daimaru, who opened their first Australian store over six floors located between the shot tower and La Trobe Street. (Daimaru also operated a second store on the Gold Coast in Queensland, which also no longer trades)

Large scale redevelopment of the city block bounded by Lonsdale, Swanston, Lonsdale and Elizabeth Streets was studied in some detail during the 1960s and 1970s, being closely linked with work on the City Loop underground railway. Early work on the site commenced in 1971 when land on the south side of La Trobe Street was acquired, to enable the cut and cover construction of Museum Station (now known as Melbourne Central). With planning for the site being carried out by the Melbourne Underground Rail Loop Authority from 1980, the railway station opened in 1981, but protracted negotiations failed to find an anchor tenant for the development, resulting in the State Government of Victoria deciding in 1983 that a private developer should be sought.

By the time registrations closed in March 1984 a total of 28 submissions had been received from developers, with eight selected organisations invited to respond. A government panel sat in April 1985 to evaluate the responses, and one month later announced their preferred scheme: designed by Hassell Architects for EKG Developments, a joint venture between Australian property developer Essington Limited and Japanese construction firm Kumagai Gumi. The contract was signed soon after but without Essington Limited, who were removed by the State Government after a number of directors were linked to the Nugan Hand Bank. The project was also scaled back, with the hotel removed, and the office tower reduced to 72 storeys and then 55. It was also at this time that Kisho Kurokawa was brought on board as architect, with Hassell and Bates, Smart & McCutcheon were compensated by becoming the joint documenters of the scheme. An anchor tenant was also found, Daimaru signed on due to the involvement of the Japanese Sumitomo Bank on the project.

Melbourne Central finally opened in 1991 but never became profitable for owner Kumagai Gumi, who sold 97.1 per cent to Australian property manager GPT Group for $408 million in 1999, retaining 2.9 per cent in order to write the asset off over 20 years. Kumugai abandoned this plan in 2001, selling their remaining share to GPT for $17 million. Daimaru closed their department store in 2002, paying five years' rent ($30 million) in return for abandoning their lease commitment which ended in 2016.

With half the total retail space empty due to the loss of Daimaru, GPT announced a $195 million plan to renovate the centre in April 2002. Eventually costing $260 million, the renovated centre with a postmodern design by architects Ashton Raggatt McDougall, aimed to open the complex to more natural light, new street-front shopping strips, and bubble-like additions to the footbridge across Little Lonsdale Street, but largely compromised the design of Kurokawa. The works also compromised access to the adjacent Melbourne Central railway station, removing direct access to Swanston Street and directing passengers through the shopping centre. The renovation took the book value of the complex to $1033 million in 2010, up from $229.8 million as of at December 31, 2001.

In 2010 plans for a second redevelopment was unveiled by GPT, being a $30 million stage one of a $75 million project. Again using Ashton Raggatt McDougall architects, the north-east corner at Swanston Street is again being altered, a new food precinct will be opened, and a new entry at Elizabeth Street built to create another cross-block connection through the precinct.