The City of Stonnington has successfully settled the sale of Coonil Crescent in Malvern to Cabrini Health.
The sale price of the discontinued road was $7.15 million, including GST. This figure included the transfer of a strip of Cabrini-owned land to Council and a contribution by Council towards the cost of constructing the new public walkway. Settlement of the discontinued road to Cabrini occurred on 18 June 2026.
The sale proceeds will support funding of Council’s $49.6 million capital works program in 2026/27, including an increased investment in core infrastructure (roads, footpaths and drainage).
In November 2023, Council resolved that a portion of Coonil Crescent was not reasonably required for public use and that this portion could be discontinued and sold to Cabrini to facilitate their Malvern hospital expansion plans, which involve a new building to the east of Coonil Crescent.
Council reached an agreement with Cabrini in April 2026 that safeguarded a key pedestrian link and placed protections around future development near its hospital campus.
As part of the sale agreement and in response to community feedback, Cabrini will construct a new, publicly accessible walkway connecting Wattletree Road and Derrill Avenue, ensuring ongoing pedestrian access for the local community.
In addition to providing access, the agreement delivers broader community benefits, including the transfer of a strip of land along the eastern edge of the walkway to Council.
It also responds to long-standing concerns about the potential impact of future expansion, while aiming to protect the surrounding residential area.
Mayor Cr Melina Sehr said the agreement strikes the right balance between supporting a valued local health service and protecting neighbourhood character.
“This outcome gives residents peace of mind that their streets are protected, while supporting Cabrini’s continued role in providing high-quality care to our community,” Cr Sehr said.
The decision reflects Council’s commitment to safeguarding public access, enhancing local amenity and delivering thoughtful, community-focused planning outcomes. Council is working closely with Cabrini to ensure that the feedback and concerns of the local community have been heard and are being accommodated.
