Little India will remain part of a future $600 million revitalization project in Dandenong, says developer Capital Alliance’s chief executive Mohan Du.
This month, Little India retailers have raised doubts about whether they could afford to stay in the Foster Street precinct.
Currently the traders pay a discount rent to the State Government’s Development Victoria.
But recently Housing and Building Minister Harriet Shing stated they will be paying “market value” in the new development.
Last year, the State Government approved the precinct’s masterplan, including 470 new homes, 2500 square metres of community space, a new supermarket and food market hall
Du says existing traders will have “first right” to occupy the revitalized precinct.
“We don’t want to see Little India disappear.
“Whether there’s animosity with the current arrangements (between DV and the tenants), in the future … there is an absolute expectation that it would uplift the retail envelope.
“We’ve had nothing but positive feedback from the local business community. They want this to happen.”
Capital Alliance hasn’t made any tenancy offers yet, he says.
“We’re not in a position to do that. We haven’t even finished the permit application stage yet.”
He expects to lodge planning-permit applications for the project’s early stages by late September, with a view to offering tenancy agreements by early 2026.
The first stage will be building the Little India, retail and entertainment areas as well as residential apartments between Thomas and Mason streets.
Building all seven stages, including potentially a hotel, dwellings, offices, education and health services and cinema, will take up to 16 years.
Part of the Capital Alliance plan is to bring in “mini-majors” such as a supermarket chain to attract more shoppers, as well as family-friendly entertainment activities.
“We want to make it as vibrant as possible. It won’t be exclusively Indian traders.”
Du’s vision is for a “new, modern and safe” precinct that’s active with office workers and businesses.
“You have natural surveillance and people will be proud of their local community.
“What the area needs is scaleable development, not just literal towers and towers of housing.
“We think you also need to create a vibrant retail and entertainment precinct.”
The State Government’s $290 million Revitalising Central Dandenong project has progressed in fits and starts since 2006.
But there’s much “untapped” potential in the city, Du says.
“There’s an opportunity to create something very special in central Dandenong.
“It’s the second largest employment hub in Melbourne, the second capital of metropolitan Melbourne.”
Long-term clothing retailer Sudesh Singh recently told The Guardian that “the bottom line is, we can only survive if the rental is reasonable”.
“It’s no longer a precinct, it’s no longer Little India.”
“They’re selling it as a Little India. But if we look at that, they’ve got hotels, motels and accommodation. They want to make it like Bourke Street.”
Development Victoria precincts acting group head Ronan Mellan said DV provided a range of supports for existing traders including rental assistance, business mentoring and assisted debt management.
“The brand new Little India precinct in Central Dandenong will offer modern facilities and create more opportunities for businesses to thrive.”
In June, Housing and Building Minister Harriet Shing stated to a Parliament inquiry that currently tenants were paying below-market rental rates.
“All current traders will be given an opportunity to be part of the redevelopment, with Capital Alliance being the new landlord and on commercial terms that reflect market values.
“In preparation for the development of stages 1 and 2 within the Revitalising Central Dandenong project, tenants in these stages have been issued with vacation notices.
“Most of the current trading tenants have been provided with relocation options for their consideration and it should be noted that some tenants will not be relocating because of commercial considerations.”
DV was also supporting relocating and vacating businesses, including rent-free periods to assist with the costs of moving, she stated.
