The purchaser – an as yet unknown private investor who acquired the former school on a long settlement – is expected to pursue a rezoning, taking advantage of state government planning policies which have identified Richmond for intense redevelopment. The Richmond asset is already subdivided into 17-lots, which makes issues like planning and cash flow more flexible.
Meanwhile in the Clayton pocket of Notting Hill, about 19 kilometres south-east of the CBD, the former Monash Primary School sold for $6.8 million. The 1.7 hectare Normanby Road site was acquired by local developer Three Pillars Property Group, an active purchaser of disused public and private education facilities in Melbourne’s east.
Buyers of crown land properties (like some acquired by Three Pillars recently including the Monash school site) do not incur stamp duty charges. Three Pillars plans to replace the school with about 70 townhouses.
Savills directors Nick Peden and Clinton Baxter sold the Richmond and Clayton sites. Students from this Kangan campus will relocate to two other schools: Cremorne (part of Richmond) and Docklands.
Last year the Australian Education Union paid $16 million for a large riverside Abbotsford office next door to its headquarters which it also owns. A few years earlier the Association of Independent Schools of Victoria paid $6 million for its enormous West Melbourne headquarters.
Earlier this week three Mowbray College campuses in the outer west hit the market, expected to sell for a total of about $9 million.
Victorian teachers recently rejected a performance-based pay rise which would make effective educators the best paid in the country. A strike is set for early next month.