Australian Unity is reported to have paid more than $20M for a 2,662 square metre factory next to the inner city Prahran train station.

Property observers are speculating that the lower levels will have a high retail component given that precinct has the highest commercial rents outside of the CBD.

This will be the second medium rise aged care facility in an inner-city location; construction is underway with their new Carlton development in Melbourne - Rathdowne Place (pictured).

When complete it will have 162 beds in a tower accompanied by 90 retirement village apartments across eight levels in and adjacent tower. The development is valued at $180 million.