Billionaire developer Larry Kestelman’s LK Property Group wants to turn the former Venus Packaging factory site in Melbourne’s east into a $50-million development.
The application, submitted through subsidiary LKPG Church Street Development Pty Ltd to Yarra Council, seeks to rezone the rear portion of 549-555 Church Street and 3 Cotter Street at Richmond from General Residential Zone Schedule 1 to Commercial 2 Zone.
According to council documents, the proposal includes “multi-level office development and the reduction of car parking spaces” while retaining much of the existing building with facade modifications. Six levels would be added to create a 34.7m, eight-storey block.
Kestelman bought the prominent 3864sq m rectangular site in June of 2024 for more than $40 million.
The Commercial 2 zoned property, bound by Church, Northcote and Brighton streets, previously traded for $4.2 million in 1995.
The site is just outside Cremorne’s boundary at Richmond, 3km east of the CBD.
Plans by architects Bates Smart show retail premises across the ground and first floors, and office space on levels two to seven.
Outdoor terraces adjoining office levels and a single-storey services building on Cotter Street are also part of the proposal.
Carparking would be reduced to 46 spaces plus three motorcycle spaces, but provide 110 bicycle parking spaces and a ground floor loading dock accessed via Brighton Street would be retained.
The application currently sits under preliminary assessment. The Commercial 2 Zone designation would enable small format supermarkets up to 1800sq m without permits, remove office and retail floor space caps, and allow for a bulky goods premises.
Planning Scheme Amendment C333yarra would enable the rezoning from residential to commercial use. Public notification would begin after preliminary assessment, allowing community input during the statutory review period.
Kestelman already has a foothold in the inner-east market after his $30-million purchase of a permit-ready site at 60-88 Green Street, Cremorne in 2022.
That project, currently under construction and due for completion next year, will house LK Property Group’s executive offices alongside Brand Collective and the National Basketball League headquarters.
Kestelman, who has a reported net worth of $1.27 billion, has been the majority owner of the National Basketball League (NBL) since 2015.
The latest proposal follows significant development activity along Church Street, including Alfasi Property’s $600-million Matchworks redevelopment of the former Bryant and May Industrial Complex at 560 Church Street, Cremorne.
That project, approved by Heritage Victoria in August 2024, would deliver eight to 13-storey buildings incorporating a 198-room Hoxton hotel and extensive public realm improvements.
