Kestelman's burgeoning LK Property Group is speculated to be paying about $10 million for the 970-square-metre block in Claremont Street, near the train station, in a pocket of South Yarra known as Forrest Hill.

Across two titles, the commercial properties were not offered with residential conversion plans, but agency CBRE did tout the block's high-rise redevelopment potential. It was sold by agents Scott Orchard, Julian White and Mark Wizel.

In Forrest Hill, developers are building towers of more than 30 levels.

At the nearby Capitol Bakery site on the corner of Toorak Road and Chapel Street, LK was recently granted approval to build a 50-level skyscraper with some 450 flats.

Kestelman had earlier applied to build a 58-level building with 660 units on the 5600-square-metre block he bought for $85 million last year.

Despite not having approval to replace the site, the entrepreneur paid Oscar award-winning actress Charlize Theron $3 million to promote the complex dubbed Capitol Grand during a 48-hour whirlwind visit at this year's Melbourne Grand Prix.

The Claremont Street site is the latest in a string of acquisitions for LK, which is focused on the Melbourne market.

In South Yarra, the builder is redeveloping the former Watergrill restaurant in Toorak Road, a site bought for $9.35 million in 2013.

Closer to town, LK is replacing a 972-square-metre site at 57-61 City Road, opposite the Eureka Tower, with a 37-level apartment building, The Opus Tower, containing 246 flats but only 100 car parks. Kestelman is believed to have paid more than $11 million for the site last year.

New laird for Abbotsford pub

An investor has paid nearly $2.7 million for an Abbotsford pub abutting the train line near the Collingwood station.

The Laird Hotel at 149 Gipps Street sold on a yield of 4.5 per cent based on the asset's annual rental return. On a 541-square-metre block, the double-storey bar and accommodation venue was marketed by Colliers International's Pat Connolly, Ted Dwyer and Guy Wells.

The new owner is believed to have no immediate plans to replace the block with flats (the marketing campaign promoted the site's medium-density redevelopment potential).

Modern Exhibition

Sydney-based GPT Group and Keppel REIT are refurbishing part of a prominent near-new office building to make it more attractive to modern-day tenants.

The landlords plan to convert a rear courtyard at 8 Exhibition Street into sophisticated "end of trip" facilities; more specifically, 21 showers, premium change rooms, bike storage and 216 cargo lockers.

Known as the EY building, the 35-level office became the CBRE headquarters last year.

That agency is responsible for two recent leases in the building, including a 33rd-floor deal to Fortune 500 company Power China Australia Development Pty Ltd.

Bite into biscuit company site 

A distinctive inner-city factory which was once the home of Phoenix Biscuits (later Westons) is for sale.

The restored double-storey building at 41 Grosvenor Street, a site of 370 square metres, is being marketed with vacant possession or a three-year leaseback to the vendor. Gray Johnson's Rory White and Matt Hoath are separately offering an adjoining block of 170 square metres.

"With its historic origins as the original home of the Phoenix Biscuit Company, which began on this site in about 1889, before building the current complex around 1930, the property on offer is a cleverly designed office-showroom complex," Mr White said.

"An owner-occupier can purchase this property in its entirety with the vacant land in Southampton Crescent affording valuable car parking amenity, or an investor can secure and hold this property to participate in the continuing revitalisation of the adjacent Abbotsford area."

Corner deal in Fishermans Bend 

One of Fishermans Bend's most prominent corner sites is understood to be quietly exchanging for a speculated $13 million.

The Kennards Self Storage facility on the corner of Montague Street and Normanby Road is surrounded by car yards, including Melbourne City Mazda, City Chrysler Jeep Dodge, South Melbourne Toyota and City Mitsubishi.

Lemon Baxter's Jonathan Walls is understood to be behind the deal. However, he was unavailable for comment.

The property is opposite an imposing grey five-level storage facility and near 11 Montague Street. Until a couple of years ago, Woolworths-backed hardware chain Masters had planned to trade from the latter site.

Sources say the Kennards-occupied property is in due diligence to sell but an ownership transfer has not yet occurred.

It has been retained for nearly 30 years by a local investor.

The block is within the Montague precinct of Fishermans Bend, set to contain the new precinct's tallest skyscrapers. It is near 245-251 Normanby Road, which recently exchanged for nearly $18 million.

Not far away, Planning Minister Richard Wynne approved two 50-plus-level apartment towers, expected to be Fisherman Bend's tallest. Numerous other residential buildings of more than 30 levels have been approved and several others are awaiting a tick.

Last week, Capital Gain reported the former Chrysler Australia manufacturing plant, in the pocket of Fishermans Bend known as Wirraway, would be razed as part of as yet unapproved plans to replace 19 Salmon Street with 153 townhouses.

That 2.2-hectare site is understood to be selling for a speculated price of more than $30 million.

Last year, a 1.94-hectare collection of adjoining industrial properties in Plummer Street, Wirraway, also sold to a developer. This holding is expected to make way for a mixed use project including five apartment towers atop a podium shopping centre.