Stockland has sold a 7.7 hectare block of land in Melbourne to Wesfarmers' Coles division for an undisclosed amount.

Initially, the undeveloped land was set aside for Stockland’s Tooronga project where it was meant to see the building of a 785 apartment complex but due the company’s poor performance in its apartment business it decided to exit the division.

Stockland will retain ownership of the Coles anchored shopping centre which opened in August 2010.

According to Stockland, the settlement will occur in October 2013.