Waste management giant Cleanaway has sold two landfill sites in Melbourne's west for up to $22 million.
Cleanaway reported in a statement to the Australian Stock Exchange it had handed control of two dormant landfill sites in Brooklyn to specialist developers Pelligra Group.
![On the move: Cleanaway has sold two former rubbish tips in Braybrook.](/web/20170131052733im_/http://www.smh.com.au/content/dam/images/1/1/x/j/v/x/image.related.articleLeadwide.620x349.gu2afm.png/1485837003786.jpg)
"These transactions are forecast to generate a pre-tax profit ... of approximately $20 to $22 million," it said.
Pelligra will take over responsibility for remediating and monitoring the sites in Market Road and Old Geelong Road and has undertaken to cap the sites as required by environmental regulations.
![Growth: Cleanaway applied for a massive expansion of the Ravenhall tip.](/web/20170131052733im_/http://www.smh.com.au/content/dam/images/g/u/2/a/c/a/image.related.articleLeadwide.620x349.gu2afm.png/1485837003786.jpg)
"Based on forecasts, the sales of these closed landfills will reduce spending on landfill rectification and remediation by approximately $20 million over the next six years," Cleanaway said.
The former tip sites have been dormant for years and had undergone initial remediation works, a spokesman for the company said. Their location in the Melbourne's fast-gentrifying inner-west has increased the land value substantially.
Pelligra specialises in developing industrial and contaminated sites. It redeveloped the heritage former ETA peanut butter factory in Braybrook and the John Darling & Son flour mill in Albion.
The peanut butter factory was converted into offices and retail outlets and the flour mill is being remediated before being converted into offices.
Cleanaway operates several landfill sites in Melbourne, including a large facility in Clayton and the Melbourne Regional Landfill tip in Ravenhall on the city's north-west outskirts.
The Ravenhall facility has attracted significant controversy particularly after Cleanaway applied last year to triple the size of the facility, making it one of the country's largest tips and attracting significant opposition from nearby residents.
The sale was expected to be completed by early March, Cleanaway said.