University of Melbourne secures $10.78 million in future South Melbourne state school site sale

A South Melbourne property has been sold by the University of Melbourne for $10.78 million to the Victorian state government with the settlement last month.

It is set to become a primary school after the then Baillieu state government responded to the perceived looming crisis of rising enrolments and overcrowded inner city state schools.

The 129-161 Ferrars Street property was identified in a 2012 report that signalled its as the preferred location for a new primary school due to its access to the 96 tram route and proximity to the Melbourne Sports and Aquatic Centre.

The report by Ernst & Young acknowledged the 5,136 square metre site's closeness to City Road could pose a congestion problem.

The number of five to 12-year-olds in Southbank and Docklands is forecast to jump from 285 in 2011 to 1,366 in 2021.

The primary school is expected to open in about 2017, and could be expanded to take students up to year nine.

The site, variously owned by James Hardie, Rocke Tompsitt & Co, and Elders through the decades, has been owned by the university since its 1977 purchase of the then Nathan Blight building.