A $200 million Business and IT-focussed college, and student accommodation apartment complex will be developed on the prominent City Mazda car dealership, opposite the southern boundary of Melbourne's popular Queen Victoria Market.

The Melbourne Institute of Technology, headed by Shesh Ghale, has paid $16.2 million for a portion of the dealership, which will make way for a new college campus capable of accommodating 3000 students, and an apartment tower. The development is estimated to have an end value of between $150 million and $200 million.