The site, bounded by Guinea, David, Wilson and Olive Streets, is expected to provide for the development of dozens of new homes, as well as the restoration of some of the city’s finest former residences.

CSU’s executive director for facilities management, Stephen Butt, said the Zauner Group had been selected as the preferred proponent to redevelop the prime site after an exhaustive selection process.

“In keeping with Charles Sturt University’s philosophy of maintaining close relations with the cities in which it is located, the university sought to dispose of the property in a way that will leave a lasting positive legacy for Albury,” Mr Butt said.

“In selling the property, the university provided a development control plan that was endorsed and adopted by Albury Council, which provides guidance for the future development on this site.”

Zauner Group director, Garry Zauner, said the principal aim of the initial stages of the redevelop was to “return the stately former residences back to their former glory as residential homes”.

Mr Zauner last night confirmed several historic homes in Olive Street, that had been utilised as campus premises by the university, are included in the sale.

“We are very humbled and excited to have been chosen as a long standing local company from a wide field for this project,” he said.

“This is a continuation of a long standing association with the development of the region that the Zauner Group has been fortunate to be part of for over 50 years.”

The sale signals the near completion of the university’s move to its 87ha site at Thurgoona.

The Murray Children’s Centre was transferred from central Albury in January and only the university’s allied health clinic, on the corner of Olive and Guinea Street remains in town.

It is due to move to a new allied health and wellness centre at Thurgoona early next year and the clinic will operate at its current premises in the interim under a commercial lease from the developer.

Mr Butt said since 1993, when the university moved to substantially expand its presence in Albury-Wodonga, it had invested more than $70 million in land, buildings and facilities at Thurgoona.

“We simply outgrew our Albury city site, which is now surplus to our needs,” he said.

“When we decided to dispose of the site, we ran a two-stage process to obtain expressions of interest from a number of local and national developers who were keen to participate.

“In selecting the Zauner Group as the preferred developer, the university noted that the developer addressed the essential criteria of the request for proposals, and is confident the development control plan will guide the future development of this significant site.

“The process has evidenced the deep experience from local groups and their commitment to deliver a quality project for the city.”

Mr Zauner said planning for the redevelopment was well advanced and plans would be tabled in coming months.

He said the work would be staged and would begin once the required development consents were issued.