The Maribyrnong site up for sale spans 127 hectares and has been earmarked as a key site for the governments plans to help address national housing shortages. The government said the site is large enough to develop up to 6,000 new homes, 10 kilometres from the Melbourne CBD.
"This unique development opportunity will deliver housing, infrastructure and community facilities for the local community and the people of Melbourne," a joint statement from Defence Minister Marise Payne, Minister for Urban Infrastructure and Cities Paul Fletcher and Assistant Minister to the Treasurer Michael Sukkar said.
"The sale process will begin with a market sounding stage designed to gather insights and feedback from industry. The duration of the sale will be determined by this stage."
The ministers said industry advice will also be incorporated into the sale process as part of its plans to deliver housing, community amenity, heritage and environmental objectives.
As part of the sale process, the site is being investigated and treated for possible contamination from previous Defence research activities on the site.
Defence said it is working collaboratively with the Victorian Planning Authority, the Environment Protection Authority Victoria and the City of Maribyrnong to achieve the best possible urban renewal outcomes for the site.
"The Defence sale process and Victorian government’s planning processes include continuous community engagement activities to obtain further input from the community about potential future uses of the site," the statement read.
The site was used from 1908 until 1994 for the manufacture of explosives in bombs, mines, detonators and hand grenades.