Bourke Street Mall’s new mixed-used development project – Melbourne Walk – is set to rejuvenate the city’s CBD core with comprehensive retail and hospitality offerings, according to its developers.

With construction ongoing, investment firm Steadfast Capital will turn the popular CBD arcade into a mixed-use retail and dual-branded hotel destination.

The site was formerly known as ‘The Walk’ and comprised eight buildings including Diamond House, Allan’s Building, the Public Benefit Bootery and York Building.

Teck-Lay Tay, executive director of Steadfast Capital, said the rejuvenation will draw further patronage into the Bourke Street Mall precinct.

Meanwhile, Colliers will lease approximately 6250sqm of premium retail space on the development to secure tenants.

“Melbourne Walk represents the next generation of Bourke Street Mall and will refresh the main retail core of the CBD and further enhance the city’s retail-laneway network with the heavy shopper, office and student foot traffic daily,” said Colliers’ Adam Lester.

“Over the next five years, the precinct will experience a dramatic revitalisation with major international retailers longing for a presence in prime Melbourne CBD entering the Melbourne market via Bourke Street Mall.”

Local and international flagship brands have an opportunity to enter what is one of Australia’s premier retailing high streets, joining retail giants such as Myer, David Jones, Zara and H&M, he said, as Bourke Street Mall “undergoes a major retail regentrification”.