St Kilda Road Strategic Disposal: Dual-Mandate EOI for Revenue and Affordable Housing
Aerial map Source: City of Port Phillip
Precinct map Source: City of Port Phillip
Site photo Source: City of Port Phillip
The Challenge: The Council held a parcel of underutilised surplus land. Its inactivity represented a significant opportunity cost to the public balance sheet. The challenge was to activate this site and extract maximum public value while avoiding the community friction often associated with standard land disposals. The project required a transaction structure that justified divestment by delivering a clear return to the ratepayer, alongside specific planning and social housing outcomes.
Our Intervention: We designed a publicly defensible EOI process. This used the market to bid on both commercial and social outcomes. This approach turned a standard disposal into a strategic acquisition fund that Council could use for broader mandates.
Our Impact:
Strategic Value: The sale facilitated three high-priority Council mandates from a single transaction. It generated revenue to purchase future strategic open space, secured built-form alignment for the St Kilda Road South Framework, and ensured the future delivery of affordable housing.
Dual-Pathway EOI: We created a transparent, auditable evaluation plan for both commercial and affordable housing bids. This included an abated purchase price and Section 173 obligations.
Governance and Compliance: We ensured the entire process aligned with the Local Government Act (s114). This provided maximum public defensibility and protected the sale from political or legal challenges.
Social Outcomes: We used the transaction to secure market-led affordable housing and community benefit obligations. This was achieved through enforceable legal agreements.