LEND Lease has been named as preferred builder, to develop Melbourne's wholesale fruit, vegetable and flower market in Epping.

Victorian Major Project Minister Tim Pallas made the announcement today, saying the $870 million project will create about 600 jobs.

The move will also give the government a swag of inner-city land parcels to consider selling, or developing. Much of the land is located in Melbourne's inner-west, between the Docklands precinct and Footscray.

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