Like the Transport Accident Commission which relocated from the CBD to Geelong last year, VicRoads may “anchor” a new regional Victorian office, while also operating from two suburban offices, probably in Ringwood and Box Hill.
Alternatively it may relocate to the CBD, or inner-city location such as Southbank or Docklands.
Staying put at the existing offices, is also an option.
The Department of Planning and Community Development, which was handling the feasibility study for the 2.5 hectare site until recently, declined to comment when contacted by Capital Gain.
Representatives from DTF and VicRoads were unavailable.
Industry sources speculate VicRoad’s outgoing Kew site would be worth about $75 million, based on current land values of about $3000 per square metre.
The site could yield a mixed use village worth half a billion, or more, sources speculate.
In calling for consultants to advise on the future of the site, the government goads the controversial Melbourne @ 5 Million planning document which aims to contain urban sprawl by developing higher density projects predominantly around existing transport nodes.
The government has the flexibility to sell the site with a short-term lease to VicRoads.
This gives VicRoads time to find and possibly build alternative offices. It also capitalises on current developer thirst for infill development sites, and would give builders enough time to obtain a permit, and market a development, without losing too much of an income.
Other government controlled sites sold or put to the market recently, seeking either a buyer, or joint venture partner, include:
• A 1.24 hectare development site on the banks of the Yarra River, between the Seafarers Mission building, and Wurundjeri Way. Marketed as the “North Wharf precinct”, the site has been earmarked to become a “new Southbank”;
• A 3.1 hectare Port Melbourne site once occupied by VicRoads as a toll facility for the Westgate Bridge, and later a training facility;
• The Arthur’s Seat chairlift;
• The former Royal Melbourne Regiment Drill Hall building in Victoria Street, near the Market, earmarked to become a public housing block;
• A former 1.3 hectare former park at the southern entrance to the Footscray train station;
• Several development sites around the corner of Bell Street and Sydney Road, in Coburg;
• Land around the Camberwell train station.