Developers outlay $28.6 million on two ex-Melbourne government schools

Two former government schools in Melbourne’s south east have sold to developers in separate deals this month.

In what may be this year’s first development site sale, exchanged last week, the Department of Treasury and Finance has offloaded a 1.5 hectare Springvale South site (pictured, top) for $5.6 million.

The vacant tract of land, once known as 55-67 Coomoora Road but marketed as Crown Allotment 2272 Darren Road, is a subdivided piece of what was once Keysborough College’s Coomoora campus, which closed in 2011.

Another 2.4 hectare piece of the ex-school, known as 15-29 Coomoora Road, was sold by the Department of Education to Development Victoria a couple of years ago after a rezoning to Neighbourhood Residential, allowing it to be replaced with houses.

The 55-67 Coomoora Road, which has been gazetted with the same zoning, is also expected to make way for a residential community, though it was not offered with a permit.

Both Coomoora Road sites abut the Keysborough Primary School.

Interestingly, the under bidder for the Darren Road plot is speculated to be a childcare centre operator.

Other local developers are understood to have also thrown their hat in the ring, but this could not be confirmed.

Knight Frank director Ed Wright was the marketing agent.

The Springvale South parcel is about 29 kilometres from the CBD.

Chinese developers swap Oakleigh South site

Meanwhile in Oakleigh South, which is about 17 kilometres south east of town, Heng Si International is paying $23 million for a 2.04 hectare block at 10 Alvina Street.

The former Clayton West Primary School was offered by another China-backed builder, Spire Group, which paid $15.4 million in 2014.

Spire Group offered the site with a permit for 96 townhouses.

Its residential redevelopment application was knocked back twice before being approved by the Victorian Civil and Administrative Tribunal in 2017.

Elsewhere in Melbourne, Heng Si International owns sites in Ashwood, Essendon and Hawthorn.

The Oakleigh South deal was negotiated by CBRE’s Julian White, Mark Wizel, Lewis Tong and Chao Zhang with Gross Waddell’s Andrew Waddell and Andrew Greenway.

Latest in a string of Melbourne ex-school sales

A string of former schools have recently found their way into the hands of developers.

In July, the Department of Education and Training sold the 1.25 hectare former Wantirna Heights School at 56 Kingloch Parade to builder Oz Property Group for $9.7 million.

Also in the east, the government sold the ex-Boronia Heights campus for $35 million.

Last May, we reported Development Victoria was readying to sell down the former Keilor Heights Primary School, in Melbourne’s north west.

In the same month, the 32A Green Gully Road, Keilor, site which once accommodated the Calder Rise Primary School traded to aged care accommodation provider Mayflower Brighton for $8.2 million.

In August, 2018, the government sold 5.3 hectare former William Ruthven Secondary College in Reservoir to an industrial owner occupier for $12 million.

The Oakleigh South site (shaded) relative to Metropolitan Golf Club, Hungtingdale Golf Club and Talbot Park.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco