A major development site in Melbourne’s east is expected to fetch its joint owners Abacus Property Group and developer Gillon Group more than $250 million, nearly 30 times an initial investment.

The 14 hectare super-site in East Bentleigh was formerly a W.H. Wills cigarette factory before being converted into the Virginia Park business estate by the property group and the developer.

Abacus, listed on the ASX with a market value of nearly $3 billion, purchased a half share of the industrial site, now surrounded by Melbourne’s middle suburbs, from Gillon Group in 2006 for $37.5 million.

Gillon Group itself scooped up the former cigarette factory in 1993 for $8.5 million and turned it into a successful business park.

Both groups stand to make a substantial windfall after the site was rezoned in March last year from industrial and commercial to give it the status of a comprehensive development zone, which includes residential among multiple other uses.

The block on East Boundary Road, dubbed the East Village precinct, can now accommodate up to 2200 apartments and townhouses, two supermarkets, 14,000 square metres of retail and 40,000 sq m of office space.

The bulk of Abacus’ property portfolio is concentrated in city offices and the self storage sector, where it owns multiple sites under the Storage King brand.

Agents Colliers International and Dawkins Occhiuto are handling the transaction.

Dawkins Occhiuto’s Walter Occhiuto said the site’s rezoning and development will change the lifestyle and amenity of the area.