International dance club brand Ministry Of Sound is to open its first venue in Australia.

The venue will be part of an A$300 million ($246 million) makeover of the "Golden Triangle" of Melbourne's historic beachfront area of St. Kilda, which is due to be completed by 2010.

The redevelopment of the 15,000 square meter Golden Triangle has been delayed for a year.

Port Phillip Council had planned to bulldoze the existing Palace nightclub and upgrade the neighboring historic Palais Theatre, which hosts concerts and movies. The managements of both venues, which are leased from the Victorian state government, initiated a series of court action to stop the move.

The operators of the Palace, Bradto Pty Ltd, have now announced they would vacate on June 12, after notching up A$2.5 million ($2.04 million) in legal costs.

Port Phillip Council on Friday said that the winning bid to restore the area went to the Babcock & Brown/CITTA consortium. The redevelopment will include a number of new music venues, including jazz venue The Basement and the Pash nightclub.

The Palace will be retained as a 1,500-capacity live music venue. The A$20 million ($16.4 million) revamp of the Palais Theatre will have a 3,000 seat live entertainment area and a recording studio. The new look facility will include a cinema complex, 181 retail outlets, a boutique hotel, a basement super market and a gym.

"This is a clever and considered use of the space, a who's who of Melbourne and Australian architects, hospitality, fashion and live music industries," Port Phillip mayor Janet Bolitho commented.

Among those unsuccessfully bidding to redevelop the area were separate consortiums including Paul Dainty, managing director of Dainty Consolidated Entertainment; Michael Gudinski, chairman of the Mushroom Group of Companies; and Glenn Wheatley, managing director of TalentWorks.

Wheatley, who also manages John Farnham, told his idea was to include a Hall of Fame.

MoS has been hot on the international expansion trail this year, having already opened a club in New Delhi, its first in India. As previously reported, the company has announced plans to extend into Singapore, Malaysia and China.