Melbourne may be the city famed for its laneways that reward the clued-in resident or visitor with bustling shops and restaurants just off the beaten path, but soon it will face competition from Sydney, where AMP Capital is looking to “breathe new life” into the once-forgotten merchant laneways around Circular Quay as part of its $2.7 billion Quay Quarter project.

The investment company last week announced Quay Quarter Lanes will be the first city block to come to life in its 11,000sqm development of two city blocks around Circular Quay in a bid to transform the CBD precinct into a new lifestyle destination.

Quay Quarter will deliver over 50 retail tenancies upon its completion in 2022, with the first to open in Q4 2020 in the new boutique laneway precinct between Young and Loftus streets known as the Quay Quarter Lanes.

The Lanes will deliver over 20 tenancies anchored in food and lifestyle, bespoke shops and boutiques, artisanal cafes, bars and restaurants operating 18/7, as well as high-end residential apartments.

“As Sydney city continues its transformation from a place that is not just for work, but also for after-hours experiences, Quay Quarter will help lead the way to new types of city experiences,” Luke Briscoe, MD of office and logistics at AMP Capital, said in a statement.

“Quay Quarter aims to be a global model for future city neighbourhoods with workplace and cultural experiences that bring together professionals, residents and visitors.”

Construction will also see the two remaining old wool stores in Circular Quay, Hinchcliff House and the Gallipoli Club, revitalised, with Hinchcliff House getting a new restaurant and bar to be opened by hospitality entrepreneur Scott Brown.

Brown, who was previously at Hip Group, famed for the Italian-themed Amano restaurant within Auckland’s Britomart, has committed to a 1000sqm anchor tenancy with three leaders in the global hospitality and bar industry.

The restaurant concept is expected to be in line with Brown’s previous work, which focus on sustainability, seasonality and locally sourced product, and will draw inspiration from its location within a wool store.

“It’s really exciting to be part of the rebirth of Sydney’s northern CBD, with the light rail going in and the beautiful Quay Quarter Tower across the road,” Brown said.

“We see ourselves as the lynchpin of the whole neighbourhood, a community hub within the beautiful character-filled Hinchcliff House.”

AMP Capital has commissioned Australian artist Jonathan Jones to create a site-specific art installation for Quay Quarter.

Jones, a Sydney-based Wiradjuri/Kamilaroi artist and advocate for the Aboriginal culture of Australia’s south-east, aims to spark a dialogue about issues of concern, ranging from climate change and land management to the disappearance of unique Aboriginal languages and cultures.