Construction of The Malt District, a $1 billion redevelopment on the controversial Nylex site in Cremorne, has finally commenced after developer Caydon had development plans endorsed by the City of Yarra.

In recent months, the Gough Street site has been hit by security incidents, including trespassing and a fire last month.

Earlier this month, Heritage Victoria served developer Caydon with a notice to address the ongoing deterioration at the Richmond Maltings site, home of the historic Nylex clock or face more than $770,000 in fines.

Caydon responded to a Heritage Victoria show-cause notice, outlining further steps it has taken to protect heritage structures including permanent on-site security at night, extra drive-by and walk-through patrols and repairs to boundary fencing and gates.

The original design has significantly changed after the intervention of Heritage Victoria.

Related: Caydon's Flinders Street Hotel Development Starts Construction

Builder Probuild has been appointed to build the first stage.

Stage one of the project comprises a nine-level office tower, and the 12 and 15 stepped-level Coppins Corner tower with more than 200 apartments. Shops and restaurants are planned at ground level.

The final project will include a microbrewery, and the iconic Nylex clock will be retained atop extended concrete silos.

“We are thrilled to finally start construction at this iconic urban renewal site,” Caydon chief operations officer Jarrod Stratton said.

“Issuance of endorsed drawings is a significant milestone because it means we can start to transform the site into a vibrant and exciting precinct for people to live, work and visit.”

“Construction starting brings us a step closer to the site being brought back to life, and of course the eventual restoration of the Nylex clock.”

It is understood that MYOB has secured tenancy of the 9,000 square metre office tower.

“On completion, The Malt District will be home to hundreds of residents and retail, hospitality and office workers,” Stratton said.

Hundreds of workers are expected to occupy the site for the estimated five years it will take to complete construction of The Malt District.