CHADSTONE shopping centre will undergo a $580 million expansion, which will include 40 new retailers, a 10-storey office building and even a hotel.

At least 2700 jobs will be created during construction alone.

On top of retail, office and accommodation, the exopansion plans includes 800 more car park spots and new transport links.

Premier Denis Napthine will on Tuesday turn over the first sod on the project, which will eventually create space for 40 new retailers, a cinema complex, a 10-level office building and even a hotel, will be welcome news for Melbourne’s southeast.

The State Government estimates an extra 4300 “indirect” jobs also will be created during the construction, bringing the total to 7000.

media_camera How the new Chadstone will look after the expansion.

Dr Napthine said Chadstone’s quest to remain the largest shopping centre in the southern hemisphere would boost Victoria’s economy.

“Once opened, this project will deliver more than 3400 permanent jobs and generate more than $110 million in investment by retailers and tenants,” Dr Napthine said.

Apart from retail, office and accommodation, 800 extra car park spaces and new transport links will be built

A new bus interchange and improved access from Princes Highway are among the plans.

Treasurer Michael O’Brien said the project would create new business and employment opportunities in Melbourne’s southeast in retail, service and construction industries.

“This major expansion of Chadstone is a clear vote of confidence in Victoria’s economy and continuing growth,” Mr O’Brien said.

In total, about 34,000 sqm of retail and office space will be added to the shopping centre.

media_camera Chadstone is vying to become the southern hemisphere’s largest shopping centre.

No taxpayers’ money has been invested in the venture.

Chadstone’s joint owners, Gandel Group and CFS Retail Property Trust Group (CFX), are spending the $580 million.

Dr Napthine and Mr O’Brien will join Chadstone’s joint John Gandel and CFX chief executive Angus McNaughton to launch the project.

Mr McNaughton said the expansion would deliver a new north retail precinct including “up to five international flagship stores”.

As well as retail and office space, there will be a new 1300- seat food court.

“Today marks the continued evolution of Chadstone Shopping Centre; one of the most highly visited retail destinations in the world and the largest shopping centre in the southern hemisphere,” he said.

Mr McNaughton said Chadstone produced the highest sales of any Australian retail centre.

“The joint owners will invest $580 million to deliver this project which will create more than 2700 direct jobs and 4300 indirect jobs during construction; 3400 permanent jobs will be created following the opening of the project,” he said.

matthew.johnston@news.com.au