The Department of Health and Human Services has offloaded a large site in Oakleigh to a developer for $9.13 million as the state government continues its massive surplus land divestment program.
The 4607-square-metre block at 1-9 Allen Street, about 320 metres from the Chadstone Shopping Centre, was pitched to potential buyers as a residential or aged care development opportunity.
The sale, through Savills Australia's Julian Heatherich, Nick Peden and Mark Stafford, follows another by the Department of Treasury and Finance.
Treasury sold a vacant 585sq m allotment in Parkville at 81 Manningham Street for $1.46 million. It was snapped up by a local developer looking for a luxury townhouse project, Mr Heatherich said.
"This result represents a high land value for the area," he said.
The government has listed for sale multiple small properties in Parkville.
Many were purchased by the previous Liberal government to make way for its signature East West Link Tunnel, later scrapped by Daniel Andrews when he won government.
Another large Treasury-owned asset in the area, the Evo apartment complex, has so far failed to find a buyer.
The cost of not selling the 175-dwelling complex was recently revealed in Treasury's annual report which pointed to a $68.3 million hole in targeted revenue from the sale of surplus government land.
"Submissions failed to meet the reserve price and the property remains on the market," the report said.
But a string of other property sales, 18 over past months, have added $31.47 million to the government's coffers.
As well as the Oakleigh and Parkville development sites, the government has sold a small office block in Caulfield East next to Monash University's campus for $8 million, vacant land in Kororoit Creek Road in Williamstown North for $4.5 million and a commercial building on Alexander Parade for $1.6 million.
The Caulfield East building is used by Monash University, which struck an offmarket deal with the state government to buy it.
"Monash University has occupied 100 Queens Rd, Caulfield East, for approximately 25 years to support teaching and learning at its Caulfield campus. By purchasing the building we are ensuring that we are able to continue to use the building for this purpose," a spokeswoman said.
Other land sold includes a former Mechanics Institute Hall in Ballarat, a former school site in Benella and homes in Clifton Hill and Collingwood.
