$506M Private Investment Boosts Frankston City Development

Published on 14 August 2025

Frankston City Council has approved planning application for a $91 million private development at the cinematic location of 438-444 Nepean Highway Frankston. The former home of Frankston Cinemas will be transformed into a 14 storey mixed-use building with breathtaking views of the bay.

Award-winning Melbourne-based Pace Development Group’s approved plans include 144 apartments, one shop, two hospitality spaces, a wellness centre, gym, plus 202 car parking spaces across three basement levels accessed from Nepean Highway. Works are due to commence early 2026 for completion in early 2030.

The site has been derelict for over a decade, following the closure of the Frankston Cinema in March 2014. Pace Development Group’s original proposal was not supported by Council in April 2023 and ultimately rejected by the Victorian Civil and Administrative Tribunal (VCAT) in July 2024. However once the Victorian Planning Minister had approved implementation of Council’s Frankston Metropolitan Activity Centre (FMAC) Structure Plan into the Frankston Planning Scheme in April 2025, Pace was able to work with Council to satisfactorily address any concerns and align plans accordingly.

Frankston City Mayor Kris Bolam JP says, “Council’s newly adopted FMAC Structure Plan is giving greater confidence to investors that Frankston City is a proven investment hot spot with an optimal strategic planning framework for success. The final successful application from Pace is an impressive reflection of our community’s expectations and a great alignment with our Structure Plan. This is yet another development that will help guide Frankston City’s ongoing transformation.”

Shane Wilkinson, Managing Director of Pace Development Group, said the permit approval was incredibly exciting both for the project at 438-444 Nepean Highway and for Frankston's broader transformation.

"Frankston is on the cusp of major change thanks to the forward-thinking vision of the Frankston City Council. With the Council's valued support, Pace is proud to be playing a leading role in helping to shape the transformation of Frankston by delivering new homes, jobs and retail opportunities for the Frankston community."

Also on the Nepean Highway, Urban DC’s ‘Harbour Frankston’ commenced construction in May 2025, after their first project ‘Horizon Frankston’ broke records as Victoria’s fastest selling development back in 2023-2024. Pre-sales on both developments identify enormous local demand for a diversity of housing including the premium market, and more options for downsizers.

There are currently seven approved private sector mixed-use developments in Frankston’s city centre:

Mayor Bolam continues, “When you look at the current list of approved and recently completed projects, Frankston City has a $506 million price tag of private development! Not to mention the additional 770 residential dwellings that will contribute to our housing targets. The transformation to our urban beautification, local economy, vibrancy and overall reputation from these award-winning developers and architects is going to be insurmountable.

“Every visitor daring to pass through Frankston will have a changed perception of our City, every investor will understand the sheer magnitude of opportunity, every business will realise the potential, and every resident will proudly know that Frankston City is experiencing the most exciting trajectory in decades. There is no doubt that the next evolution of Frankston City will exceed everyone’s wildest expectations.”

The FMAC Structure Plan, which provides critical clear direction on a number of criteria including land use, building design, housing and accommodation, is just one of several initiatives designed by Council to encourage, guide and support development applications that align with Frankston City’s future needs, enable the uplift of under-utilised spaces such as Nepean Highway and provide better connections to Frankston City’s prized assets of Kananook Creek and the waterfront.

Council’s 2025-2026 Annual Budget includes a new differential rate to encourage the development of vacant and land-banked properties in Frankston’s city centre. Vacant properties within the Frankston Metropolitan Activity Centre and along the Nepean Highway now attract a differential rate three times higher than the general rate, a measure designed to prevent land-banking and drive much needed investment into housing and commercial projects.

Council is also developing a streamlined application assessment timeframe for major developments that recognises the need for faster processing and review timeframes for larger projects, whilst still maintaining robust assessment standards.