Sources say the government’s Affordable Housing arm – now known as the Housing Innovations Unit – will pay about $8.5 million for the large site at 660 – 670 Elizabeth Street, between Pelham and Queensberry streets, opposite Melbourne City Toyota.
The property, which has rear access to Berkeley Street is expected to make way for an apartment village, likely to be developed in conjunction with a private developer. The project is speculated to have an end value of more than $50 million.
The Elizabeth Street site has traded as the Timber Hardware Exchange for years, and was offloaded by Ridgeway Plumbing director Phil Ridgeway.
It’s understood the site which was for sale off-market, attracted interest from private developers to unlisted property developers, who could build apartments, offices, retail showrooms – or a mixture of all three. One option, said to be worth around $7.5 million, just lapsed when the government swooped in with its $8.5 million offer, sources say.