Construction has begun on the new mixed-used development dubbed Melbourne Walk on Bourke Street Mall.

The redevelopment is Bourke Street Mall’s first new project in 50 years and includes a 6000sqm area of retail and two hotels.

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.

A 450sqm native courtyard garden and a 40kw solar array will also be incorporated into the construction, due to be completed in 2024.

IHG will open a Hotel Indigo and a Holiday Inn which will rise above a three-level podium and offer 450 rooms over nine levels.

Global design studio Buchan will lead the architectural and interior design operations for the entire project.

Lead architect for the project Hayden Djakic said the design “respects” the site’s heritage with expanded dining and bar offerings.

“The notion of individual building forms will be retained behind four restored facades, with the spaces between allowing natural light to penetrate deep into the site and supporting an arcade and cross lanes at ground level,” said Djakic.

Buchan interiors sector lead Valerie Mack said the design of the hotels “merges the glamour of retail with the gritty laneway culture of contemporary Melbourne” to create an urban destination for hotel guests and locals alike.