The 2636 square metre site at 113-133 Rosslyn Street,  close to the Flagstaff Gardens and railway station, includes a three-level red brick factory, low rise warehouses and a car park.

A laneway separates it from another site owned by Buchan, at 135 Rosslyn Street, which is going to auction on December 11.

Buchan has produced a design scheme for the site that proposes two apartment buildings of nine and six levels boasting city views.

Both sites are down the road from another major development site. Australia Post put its Rosslyn Street call centre on the market last month after winning a planning permit for a 500-unit apartment development.

Agents CBRE and Gross Waddell marketed the Buchan-owned sites via an expressions of interest campaign

CBRE agent Jamus Campbell said seven offers were made for the site which was bought by a private Asian buyer.

"It wrapped up pretty quickly after the expressions of interest campaign closed," Mr Campbell said.

"We had large amounts of interest in the site from both national and international groups, because of its excellent potential for high density residential development," he said.

Just a short walk from the CBD, West Melbourne is undergoing huge transformation with its former industrial precincts giving way to new developments.