A heritage building in Lonsdale Street in need of a massive overhaul instead will be demolished and replaced with a 34-level office tower.

The Princess Mary Club, which is next to the Wesley Church, was built in 1926.

The Princess Mary Club building in Lonsdale Street will be demolished. Credit:Luis Ascui

It provided accommodation in the city for young women who would otherwise be unable to receive a tertiary education.

The Uniting Church website said it continued in this role until about 1970.