The proposed 20-level project with 148 units will include an internal area of greater than 25,000 square metres and therefore need to be decided by Planning Minister Richard Wynne.

LPG, directed by Lindsay's son, Andrew, and which now conducts office functions at Essendon Fields, paid $16 million for the five-level St Kilda Road office on a 3038-square-metre block in a deal that settled in late 2007 – considered a peak in the commercial property cycle (immediately before the GFC-led crash affected local markets).

Interestingly, agents during that campaign were touting the low-rise office's potential to be replaced with a much denser residential complex. Queensland builder Sunland, responsible for prestigious developments including Gold Coast's 322.5-metre Q1, was reportedly in the shortlist of buyers before being outmuscled by LPG.

The 5028-square-metre building suffered a high vacancy rate, and returned just a third of the rent it potentially could, when it was listed by local private investor Henkell Brothers.

In the subsequent nine years, various factors including the continuing popularity of St Kilda Road as a residential destination, have resulted in local asset values increasing substantially.

The value of the boulevard's enormous sites could be worth much more if maximum permissible height limits were lifted above current levels, which largely range between 12 and 20, depending on location.

Last month, a seven-storey, 10,000-square-metre office at 553 St Kilda Road sold to petroleum entrepreneur Nick Andrianakos for $70 million. Nearby, 541 St Kilda Road, an eight-storey, circa 8000-square-metre office, sold to fund manager Bayley Stuart for $48 million.

Businessman Solomon Lew recently outmuscled burgeoning residential developer Orion, paying $55 million for 457 St Kilda Road. Like the Linfox property, this office is within what agents say is the boulevard's most valuable section, between Toorak and Commercial roads, backing onto Fawkner Park.

The replacing of St Kilda Road offices with apartment complexes has been reported extensively over more than 15 years. Next door to 493 St Kilda Road, a former office at 499 St Kilda Road is being refitted as a luxury apartment complex, The Fawkner Residences.

Kensington microbrewery applies to grow

Kensington-based artisan beer crafter the Henry Street Brewhouse is hoping to create a new social hub for the hundreds of new apartment residents who have recently moved in around its headquarters,  which is actually in Barrett Street.

The burgeoning business, whose products are sold to other hospitality venues, has applied to expand the capacity it can hold from 40 to 75, and to also increase its trading hours. Barrett Street is at the eastern end of Kensington near North Melbourne land earmarked to make way for a major new community, and train station, Arden.

Government sells central Footscray site

A prime Footscray property, mooted to become apartments before VicTrack compulsorily acquired it a few years ago to use a section of the land for the $3.65 billion Regional Rail Link – has been resold.

The government is nearly $5 million richer from the sale of 94-104 Buckley Street to residential developer Keystone Property Group, which is completing a major apartment complex next door.

The ex-industrial block was offered after being cleared by the state's Department of Treasury and Finance. Measuring 2736 square metres, the plot was marketed by Savills Nick Peden, James Lockwood and Julian Heatherich. Keystone is expected to apply to build more than 100 flats on the parcel between the Footscray and Middle Footscray train stations.

The property was one of several in the area acquired for the infrastructure project.

In April, the department offloaded two neighbouring residential homes in Barkly and Windsor streets, which it had also acquired.

In 2010, the former state government was criticised for the way it handled the compulsory acquisition of properties in this area of Footscray – first, by not informing owners before the media did, and also by leaving some owners waiting months to find out whether their properties were affected.

Sydney entrepreneurs list in South Melbourne

Sydney-based businessmen Shane Higgs and John O'Neill are selling an office building they once occupied in South Melbourne, between Kings Way and Albert Park Lake.

Mr Higgs, the former owner-publisher of The Melbourne Times and founder of local newspaper The Emerald Hill Times, also developed (then sold) a Melbourne CBD office building at 30 Russell Street.

His business partner Mr O'Neill replaced former Channel Nine chief executive officer David Gyngell as the chairman of Surfing NSW, and sits on the board of Melbourne-based charity Adopt Change, alongside Deborra-Lee Furness.

The pair purchased 33 Tope Street six years ago. It is hoped the vacant, two-level, 360-square-metre office on a 193-square-metre plot will sell for more than $1.75 million according to local sources. The selling agents are CBRE's Nick Lower and Tim Last.

Last month, Mr O'Neill listed for sale his renovated Maroubra Beach house, in a deal expected to set a new suburban record. The former Destination NSW boss and his wife, Susan Borham, editor-in-chief of two magazines, are moving closer to the Sydney CBD.

No success off the field for Lloyd Williams

Billionaire and five-times Melbourne Cup winner Lloyd Williams does not appear to have found a buyer yet for the outgoing headquarters of his development company, Hudson Conway, at 250 Sturt Street. The Southbank property has been for sale much of this year with price expectations upwards of $13.5 million. Selling agency CBRE confirmed this week that its exclusive sales period had ended, without a suitor.

Mr Williams offered the 834-square-metre plot with a permit for a 16-level, 91-unit building after earlier, contentious plans for a 41-level, 304-unit building were rejected by planning authorities for, among other reasons, density.