The first Victorian outpost for a legendary Japanese bookshop will feature alongside open-air restaurants with views of the city and late-night social spots as part of Melbourne Central’s new $170 million redevelopment.

Marking the CBD shopping precinct’s biggest expansion in 20 years, the upgrades to the Lonsdale Street end of the centre will see the retail area of the shopping precinct jump by 14 per cent, with more outlets extending trading to 18 hours a day.

As part of the redevelopment, Japanese bookseller Books Kinokuniya is to open its first Melbourne store by the end of August – marking the first time in 15 years the shopping centre has had a bookshop following the closure of Borders in 2011.

Chris Barnett, head of retail for Melbourne Central’s owner, The GPT Group, said the popular bookstore would provide a point of difference in city retail.

With over 260 retailers currently over five levels, Barnett said the redevelopment would continue to meet Melbourne’s “strong demand” for high-quality entertainment, leisure and dining.

“Combined with premium entertainment and dining experiences, the development will unlock significant value and create an even more compelling destination for visitors to meet, shop, dine and play in the heart of the city,” he said.

Construction for the new two-level dining, leisure and entertainment hub at the centre’s Lonsdale Street end is already under way, which Barnett described as being focused “less about fast food and more slow dining”.

Ten new food retailers – including fine-dining and casual restaurants – will be announced in coming months, with some eateries to have outdoor balconies overlooking the city.

In a statement, GPT Group said the overall redevelopment, carried out by construction company Maben and ARM Architecture, would create about 7800 square metres of additional retail space across levels 3 and 4, bringing the site to about 63,000 square metres of retail area.

Kinokuniya Australia managing director Satoshi Yada said the store would stock “a curated range of English-language titles, as well as unique comics, manga and multilingual books selections, and imported stationery”. It will also have an events space for author appearances and craft workshops.

Founded in Tokyo in 1927, Kinokuniya has more than 150 stores worldwide.

Its first Australian store opened in Sydney’s Neutral Bay in 1996, which then relocated to the CBD in 2002. A second Sydney store opened in April this year in Chatswood.

According to GPT Group, Melbourne Central has 55 million visitors each year, achieves total annual sales of more than $700 million, and has 100 per cent occupancy across its existing 55,000 square metres of retail space.

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