A company owned by Melbourne City Council stands to reap more than $10 million as it moves to sell a prime development site it controls in the western end of the CBD.
Marketing has begun for a Lonsdale Street industrial building owned and occupied by civil infrastructure and waste management company Citywide Services, wholly owned by the council.
The 1072-square-metre property is on the block between Spencer and King streets, which is already set to become a residential precinct with more than 6500 apartments on the former power station site and Age headquarters.
Citywide has been using the building as a depot for street sweepers which will now be housed in its facilities in either North Melbourne or on Dynon Road, in the CBD.
Colliers International's Bryson Cameron said the property could be redeveloped as a residential or commercial project given the size of the site and the area's growing popularity with residents and retailers.
"We believe that this property will be a key component to the next stage of this expanding precinct, the west end," Mr Bryson said.
The council sold 605-611 Lonsdale Street to Citywide for $833,299 in 2001.