Aged care accommodation provider Mayflower Brighton is paying $8.2 million for Keilor’s ex-Calder Rise Primary School.
The two hectare block at 32A Green Gully Road was contested by four bidders at auction yesterday.
The state government’s Department of Treasury and Finance listed it after a dispute regarding whether the local council should buy it.
Niddrie member Ben Carroll made four unsuccessful purchase offers; he earmarked the parcel abutting King Solomon Reserve as a potential home ground oval for a local female football team.
But some within Brimbank council were against the idea – the market value for the property was relatively high given its attractiveness to residential developers.
Keilor is 18 kilometres north west of Melbourne CBD.
School could have made way for 40 housing lots
“Four bidders under a competitive auction demonstrates there is a depth and buyer confidence for well located properties, particularly when the vendors terms of sale were on a 90 day settlement with no plans or permits in place” Mr Gibson said.
“Many residential developers are looking for opportunities two-to-three years ahead and trying to build a pipeline while there are favourable buying conditions,” he added (story continues below).
“Despite the forthcoming federal election, negative press and sentiment around residential markets, there are some early signs the market may have already bottomed,” Mr Gibson said, adding that “the rate of buyer enquiry so far in 2019 is certainly more positive than it was this time last year” according to the agent.
The Neighbourhood Residential zoned property could have been subdivided into c40 conventional housing lots.
The aged care provider should be able to fit a facility with more than 150 places.
In 2013, Embracia Communities paid the Department of Education and Early Childhood Development $5m for the ex-Milleara Primary School in Avondale Heights, 12km north-west of Melbourne.
On 1.85ha, this site now accommodates a 170-bed home.
In 2017, a 1.9ha parcel at Copernicus Way, Keilor Downs, two kilometres west of the former Calder Rise Primary School, traded for $11m permit-ready for 99 townhouses.
Elsewhere in Melbourne DTF sold Reservoir’s former William Ruthven Secondary College to an industrial owner occupier for $12m.
Earlier this week we reported the CSIRO listed a former Highett laboratory.
With five hectares of it available for development, it is expected to sell for c$100 million.