State Government sells block of land on Maroondah Highway to Eastland owner QIC on the cheap

YOU won’t believe how cheap a shopping centre developer purchased this parcel of prime State Government land in Melbourne’s outer east for.

This site on the southern side of Maroondah Highway between Ringwood Railway Station and the Ringwood Clocktower has been sold. Picture: Steve Tanner

AN unsightly parcel of prime State Government land in Melbourne’s east has been sold to a shopping centre developer for a bargain price.

Three sources have told Leader the land, on Maroondah Highway near Ringwood Train Station, was sold for $3.2 million — well below a $10 million real estate agent’s appraisal.

The 2000sq m parcel of land was bought in August by QIC, which also owns Eastland. But the State Government has refused to confirm the sale price.

One source and local authority, who did not wish to be named, said the low price tag “raised questions that needed to be answered”.

“When an average block in Ringwood is selling for $1.6-2 million, how can that price be justified?” the source said.

“The State Government needs to ‘please explain’ how they determined the value and also why it seems that it was not advertised to the public.”

The commercially-zoned site at 114-128 Maroondah Highway, will be redeveloped to create a link between the Ringwood station and the revamped shopping centre.

The site was previously owned by the Planning Minister, Places Victoria and VicTrack and was put forward by the Property Council in 2013 as land that should be sold for quick cash to encourage investment and jobs.

Minister for Planning Richard Wynne said it was sold in line with the “state sale of land” guidelines.

“The site was sold at a time when there is strong commercial interest in suburban hubs, maximising the return for Victorian taxpayers,” Mr Wynne said.

“Its development will be crucial to encouraging growth and investment in Ringwood, generating more jobs in a major activity centre.”

QIC real estate managing director Steven Leigh said there were several options under consideration for its future use, but did not comment further.

VicTrack stakeholder engagement manager Anna Poulos said the site provided a key link from the station to the Ringwood town centre.

“QIC plans to deliver a high quality development on the site that complements the excellent built form it is delivering at Eastland. It will activate the public forecourt areas of the station.”

A conditional contract was completed in August, with settlement expected in the first quarter of next year.

The Government also sold four blocks on land on Nelson St, Ringwood, to a foreign investor for just under $6 million late last year.

WBP Property Group commercial valuations manager Justin Thomas said the market for development sites was strong in the region.

“The Maroondah Highway site is well-positioned to facilitate the ongoing expansion of Eastland shopping and entertainment complex,” Mr Thomas said.