Ryman Healthcare has decided not to proceed with a contentious retirement development of Mt Eliza’s Moondah Estate on Kunyung Rd and is reported to have offloaded the site at a loss.
A statement from Ryman, seen by The News, said “Ryman has recently been assessing its future village development sites across Australia”.
“Unfortunately, we’ve decided we are no longer progressing a village at Mount Eliza and instead will pursue other locations within Victoria. As such, we will be progressing the sale of our site at 70 Kunyung Rd.”
Ryman Healthcare, which owns and operates 49 retirement villages in Australia and New Zealand, first purchased the 8.9ha site from Melbourne University for a reported $37.5m in September 2016.
Their plans soon hit resistance in the form of community opposition, and questions on whether the site, which is outside the urban growth boundary, was subject to green wedge development restrictions, or whether a “special use” provision would allow development (Ryman confident of retaining zone for ‘village’ plan, The News 18/12/18).
The project also faced significant opposition from Mornington Peninsula Shire, which knocked the plans back. A revised proposal with a smaller footprint was submitted, again to be knocked back, prompting Ryman to take the matter to VCAT where approval was granted in late 2022.
At a special meeting in January 2023, Mornington Peninsula Shire Council noted its disappointment at the VCAT decision but after seeking advice, elected not to appeal it.
The final proposal would have included 104 independent units, 27 assisted living suites and a 60-bed aged care centre.
Last month, Ryman Healthcare announced financial results that included its first “positive free cash flow result” in over a decade, but a net loss after tax of NZ$45.2m (AUD$39.5m). The announcement comes at a time of change for the New Zealand-based organisation with a full bank debt refinancing by way of a NZ$2b (AUD$1.75b) syndicated loan facility.
In a media release dated 27 November Ryman’s CEO Naomi James said, “We’re pleased to have already secured two sales from the [land bank] review, with Park Terrace contracted for $42 million and Mount Eliza for $35 million in recent weeks.”
It is believed the sale of the Mt Eliza land is expected to settle in the second half of 2026.
The VCAT decision granting approval for the development in December 2022 contained the clause “This permit will expire if… The development is not commenced within 3 years of the date of this permit”, indicting the existing development approval lapses later this month.
Leanne Ennis and Gen Adams from the community group “Save Sir Reg’s Wedge” that fought against the development told The News, “We remain resolute for the best possible outcome for this special site and hope the new owners plans are more respectful than Ryman’s were”.
“We are committed to working with the new owners to help them understand community concerns and to find ways to respect the flora and fauna, history, outlook, local amenity and the primary school next door.
“We acknowledge the energy and passion our dear friend, Leigh Eustace invested into protecting this land from overdevelopment. Leigh sadly passed away in October 2025 and is dearly missed.”
