Council eyes c$25m state-owned site
A Melbourne council is pushing to acquire a vacant site from the cash-strapped Labor government, to expand a park and kindergarten.
A first right of refusal process has begun for the City of Yarra to buy the ex-Riverside House, on 5144 square metres at 2 River Street, Richmond.
Based on the recent sale of 43-67 River St – $55 million for a 1.04ha parcel also with direct Yarra River access – #2 could be worth c$25m.
Like all councils, Yarra maintains an open space reserve, funded by contributions from developers subdividing land, which can be used to acquire and improve parks and recreation areas.
Nine months ago realestatesource.com.au reported it paid another government arm, VicTrack, $3.4m for a 1524 sqm road in the suburb, the corner of Wangaratta and Stewart streets, to extend a park.
In April, Whitehorse City Council outlaid $5.8m for adjoining dwellings – also to create an open-space – while the City of Geelong sold a KFC investment.
The Merri-bek City Council also offered a Pascoe Vale South site– two years after paying $17.7m and slicing a section for a park.
Last month we reported the Maribyrnong City Council bought an ex-Masonic Centre in Yarraville Village, to repurpose for community use.
Park plan
2 River St was before 2020 occupied by Riverside House, a 30-bed psychogeriatric aged-care facility operated by St Vincent’s Hospital Melbourne.
Yarra plans to use about 4000 to extend Annettes Place, a dog park with a playground with Yarra River frontage (continues below).
The balance of the block will be used to expand the Yarraberg Children’s Centre to allow for up to 50 more places.
This pocket of Richmond is about five kilometres from the CBD, at the Hawthorn border.
Valuable site
Under an earlier proposal, the council sought $5m in state funding to expand the kindergarten and $3m to establish the open space and recreation facilities.
The Department of Treasury and Finance’s September 22 decision to declare the property surplus has triggered the next stage of the disposal process.
Agency sources say the site could deliver the cash-strapped government closer to $30m on the open-market if offered with a commitment the land would be rezoned for apartments.
The council is asking the government to pause it while the two parties discuss reserving the land for community use.
Any deal would come a month since realestatesource.com.au reported the state government sold Sunbury blocks to producers of TV show The Block for $1m, considered a particularly low price for the circa two hectares.
In August, Labor sold the CBD’s State Public Offices for c$20m to a student accommodation developer.
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