V-Leader plans 32-level PBSA tower on Lonsdale Street

V-Leader is seeking to further revitalise Melbourne’s Lonsdale Street, lodging plans for a 32-level purpose-built student accommodation (PBSA) tower in the heart of the CBD.

The developer has applied to the Department of Transport and Planning for a permit to redevelop 226-236 Russell Street and 157-159 Lonsdale Street, a site currently home to the Heartbreaker bar.

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Designed by Wardle Studio, the proposal would deliver 405 student accommodation rooms providing 582 beds, alongside new retail and communal spaces.

The development would offer a mix of one, two, four and six-bedroom units, supported by 1367sq m of internal student communal space and 474sq m of external space. Retail tenancies are proposed at the lower levels, adding active uses to the Russell Street and Lonsdale Street frontage.

A key element of the design is the retention of the four-storey Continental Hotel, one of seven properties acquired by V-Leader as part of its $50 million purchase of the broader site in 2022. The heritage-listed building would remain as part of the redevelopment, with the plans proposing an internal pedestrian link that wraps around the corner building.

The site sits within Melbourne’s Hoddle Grid, close to RMIT and with access to public transport connecting students to the University of Melbourne and other education institutions.

According to planning documents prepared by Contour Consultants, the proposal would “continue the renewal of this section of Lonsdale Street”. The application states that the existing built form makes a poor contribution to the prominent Russell Street and Lonsdale Street intersection, with the proposed development intended to significantly improve the amenity of the area.

The project also forms part of V-Leader founder Andy Zhang’s broader push to transform underutilised sites across the precinct. V-Leader acquired the Russell and Lonsdale Street properties in 2022, following their purchase by former owner Longriver for $49.2 million in 2019.

The new PBSA proposal comes shortly after V-Leader lodged plans for a 39-level build-to-rent tower at 600 Lonsdale Street. The residential proposal replaces an earlier $400 million office scheme for the site, signalling a broader shift towards housing and accommodation within the developer’s Melbourne pipeline.

The student tower would contribute to the city’s growing supply of purpose-built accommodation as demand for centrally located student housing continues to shape Melbourne’s development pipeline. Other projects include Brarz’s approved 719-room conversion of a proposed La Trobe Street office development into student accommodation, alongside a 161-room student project in Clayton.

With its combination of new student housing, retail, communal space and heritage retention, the Lonsdale Street proposal would add another residential layer to the ongoing renewal of Melbourne’s inner city.

Images via The Urban Developer