Hamton and Hostplus appointed to deliver $7 billion Arden Central neighbourhood

Developer Hamton and industry super fund Hostplus have been appointed to deliver the $7 billion transformation of Arden Central, one of Melbourne's largest urban renewal projects, which will bring more than 5,400 new homes to a site just 1.5 kilometres north of the CBD.

The joint venture will lead a consortium of development, cultural and institutional partners to transform the Arden precinct into a new residential neighbourhood expected to accommodate more than 10,000 residents over the next 25 years.

The appointment follows a competitive tender process overseen by Development Victoria on behalf of the Victorian Government.

Hamton and Hostplus are already working together on another of Melbourne's major urban renewal projects, the $3.5 billion redevelopment of Moonee Valley Racecourse.

At Arden Central, the first stage will deliver approximately 1,700 homes across 45 per cent of the precinct, alongside new parks, retail, community facilities and supporting infrastructure.

Major civil infrastructure works will be undertaken before residential construction, with the first apartment building expected to be completed by 2032.

The broader masterplan will deliver more than 5.5 hectares of open space, eight new parks, community sporting facilities and a substantial retail and hospitality precinct.

A key component of the development will be the involvement of several major Melbourne institutions, including Melbourne Victory Football Club, the University of Melbourne and international entertainment company Live Nation.

Live Nation will develop and operate a new 5,000-capacity live music venue, expected to host more than 100 events annually, while Melbourne Victory will establish its new Arden Campus within the precinct.

The campus will include facilities supporting women's football and youth development pathways, alongside a community playing field and hub that can also be used by local sporting clubs, schools and the university.

The University of Melbourne will establish an extension of its Melbourne School of Design, known as MSD+, with Arden Central to become a research and education centre focused on nature-based urban development.

The partnership will also include a developer-funded research grant extending across the life of the project.

Hamton Founder and Executive Chairman Paul Hameister said the scale and location of Arden Central presented an opportunity to create an entirely new part of inner Melbourne.

"Opportunities to create an entirely new part of Melbourne at this scale, just 1.5 kilometres from the CBD, will not be replicated in modern times," Hameister said.

"To be entrusted with creating and delivering this precinct is a huge responsibility, but also an incredible opportunity to shape a place that will become part of Melbourne's identity for generations to come."

The precinct's retail offering will be anchored by a full-line Coles supermarket, supported by smaller retailers, restaurants, outdoor dining, a gym, childcare facilities and commercial space.

Land has also been identified for a future government primary school, complementing a separate government secondary school planned for the wider Arden area.

Open space will be another major focus of the masterplan, with more than 45 per cent of the site allocated to parks, gardens and landscaped areas.

Among the proposed public spaces is a 7,500 sqm park inspired by the historic blue saltwater lake that once characterised the area.

International urban design practice Gehl Studios has been involved in shaping the public realm, with a focus on pedestrian connections, biodiversity and integrating green space throughout the residential neighbourhood.

The precinct is also being designed in partnership with Wurundjeri Woi-wurrung Elders and communities, incorporating Designing with Country principles from the outset.

"Arden Central is designed to bring a different kind of city life to Melbourne, one where the neighbourhood feels more like a campus, walking is the natural way to move around and nature is woven into everyday life," Hameister said.

"With 5.5 hectares of new open space, we believe it can become a global exemplar of nature-based city living."

The development is being underpinned by the Victorian Government's investment in Arden Station, which provides the precinct with a direct connection to Melbourne's expanding rail network and places the University of Melbourne's Parkville campus just two minutes away by train.

Housing affordability has also been incorporated into the initial development plans, with up to 10 per cent of homes in the first stage to be offered to first home buyers.

Arden Central is planned as an all-electric precinct targeting net zero operational energy emissions by 2040. The development will aim for a 6-Star Green Star Communities rating, with apartment buildings targeting an 8-Star NatHERS energy rating.

For Hostplus, the investment represents another significant commitment to residential development, with the superannuation fund looking to generate long-term returns while supporting the delivery of new housing.

Hostplus CEO David Elia said the partnership demonstrated the role institutional investors could play in bringing major developments to market.

"By helping build the future of Arden Central, we're also helping build the financial futures of our members through an investment designed to deliver long-term value," Elia said.

"This project highlights the powerful role institutional capital can play in unlocking major developments that have the potential to generate strong member outcomes while also contributing to thriving communities and economic growth."

Once fully developed, Arden Central is expected to support more than 1,100 full-time equivalent jobs on-site.

The project will be delivered progressively over approximately 25 years, with the initial stage establishing the residential, retail and public spaces that will form the foundation of the new neighbourhood.