Details of the development have been kept under wraps, with no information yet released on how much commercial space it includes, nor how many apartments.

The 40,295 square metre block is between Wentworth Avenue and Eastlake Parade and the new development is adjacent to the glassworks in the historic powerhouse and the Old Bus Depot markets.

The three shortlisted developers, chosen from a request for proposal round late last year, are the Doma Group, the Englobo Group, and Geocon with Fender Katsalidis and Oculus.

Doma, headed by the Domazets, is developing the Pier at Kingston, and was the Hotel Realm developer in Barton. The Englobo group, run by John Susa, has also developed parts of the Kingston Foreshore, including the Aurora and Elementus apartments.

Geocon is headed by Nick Georgalis, and has done a number of smaller residential developments in Canberra's new suburbs. For the Kingston bid, it has partnered with Melbourne firm Fender Katsalidis, which designed the widely lauded New Acton buildings and the Mona art gallery in Tasmania.

Chief Minister Andrew Barr has said the new development is to include at least 800 carparks, including underground, and facilities for artists – including gallery, workshop and administration spaces and accommodation for visiting artists.

"It will be a place where artists, cultural organisations and creative businesses make, teach, exhibit, perform and sell their work," he said.

"The Government's vision is to make the precinct a key cultural destination, bringing together the city's heritage with a new development that will be Canberra's creative hub."

Land Development Agency head David Dawes has said the public and art spaces would be handed back to the territory.

Mr Barr said the shortlisted developers would now develop their concepts into detailed plans.

Development conditions included delivering the project within 10 years with minimum disruption to surrounding businesses and residents, he said.

The preferred developer would be announced later this year. Work could begin as early as 2017.