Deal close on Amcor site

Amcor may be a step closer to selling its redundant Alphington factory after community groups moved to support proposed planning changes for the site.

Amcor may be a step closer to selling its redundant Alphington factory after community groups moved to support proposed planning changes for the site.

Sources close to the sale say a little-known medium-tier developer is behind a $130 million offer for the 16.5-hectare site that becomes unconditional next month subject to Yarra Council's planning controls being changed.

Amcor ceased its operations on the corner of Chandler Highway and Heidelberg Road last December.

Demolition of the factory buildings and clean up of waste on the site will make way for a 3000-strong neighbourhood.

But residents want enforced height controls, a school, community centre, sustainable development and protection of the riverfront included in planning considerations.

The packaging giant has been negotiating with the City of Yarra to amend planning controls that require statutory consultation and approval from the community. Instead, it hopes to negotiate a more flexible development overlay and has agreed to draft height requirements up to 12 storeys.

The Alphington Paper Mill Action Group, which previously rejected the proposed overlay changes, said it would support them ahead of a council vote on Tuesday.