The site, which includes a modern two-storey office building, will be retained as an investment, but the school’s low-rise buildings mean there is scope to build and capitalise on views to the north and east.
Buildings in Claremont and Yarra streets closer to Toorak Road have been developed up to 23 levels. There is also a proposal by private developer Jerry Pilarinos to build a 25-level residential tower at the corner of Chapel Street and Alexandra Avenue, on the opposite side of Melbourne High.
Vinci Carbone Property director Frank Vinci, who negotiated the Claremont Street sale, said South Yarra was becoming the fastest-growing urban renewal precinct in Melbourne.
In the past year, several developers have bought properties in the streets immediately east of the South Yarra railway station, known as the Forrest Hill precinct, and are developing more than $1.2billion worth of apartments, offices and shops.