Cbus Property has received approval from the Victorian government for a new $1 billion office tower in Melbourne's CBD.
The permit-approved development will be known as 435 Bourke Street and will comprise 59,000 square metres of office space across 49 storeys.
The commercial precinct will amalgamate the existing 140 and 150 Queen Street and 27 McKillop Street sites and is anticipated to serve as a "vertical village".
Cbus Property's chief executive, Adrian Pozzo, said the project team was pleased to be able to proceed with the development, which he hopes will optimise the sites' potential and create a new landmark for the city centre.
"Following collaborative design refinement with the City of Melbourne and the Department of Environment, Land, Water and Planning (DELWP), we are excited to receive planning approval for 435 Bourke Street and we are looking forward to developing the site," he said.
Pozzo said he hopes the new development will be a pioneer project with a focus on sustainability, wellness, and connection to public community, nature and productivity.
"These qualities will be emphasised in the building's design and performance, which includes multiple vertical villages, outdoor terraces and a dedicated wellness hub to cater for the Melbourne CBD's projected workforce," he said.
"Office vacancy rates in Melbourne's CBD are at decade lows and there is little to no office space in the pipeline beyond 2023 so we are looking forward to sating some of this appetite with 435 Bourke Street."
In line with Cbus Property's commitment to net-zero emissions across its portfolio by 2030, 435 Bourke Street is targeting a 6-star Green Star rating, 5.5-star NABERS Energy rating and a Platinum WELL rating.
Demolition of the site's existing infrastructure has commenced and construction is expected to be completed by 2023.