New Zealand's Ryman Healthcare, a retirement village operator, has bought the historic Moondah, Mt Eliza estate in bayside Melbourne.
The $40 million offering was home to University of Melbourne's Melbourne Business School.
The 8.9 hectare holding overlooking the bay on the Mornington Peninsula is expected to include independent living apartments and aged care, including specialist dementia care.
It was established as a country estate called Moondah by James Grice in 1888.
It was later owned by Sir Reginald Ansett who turned it into a luxury hotel.
The MBS decided to sell the school through CBRE as it embarks on a $10 million expansion of its Carlton campus.