Iconic Melbourne landmark sold for $38m

The Nylex Clock in Richmond is set to be the "focal point" of a new $600 million development, including housing, office and retail space.

Property developer Caydon had previously purchased land neighbouring the Cremorne site, famously used in the video for the Paul Kelly song Leaps and Bounds.

Caydon owner Joe Russo told News Corp he and his company were "looking forward to getting on with the job".

"We are planning a $600 million sustainable development and the iconic Nylex clock will be a focal point," he said.

Mr Russo said the redevelopment of the silos and surrounding site would be a long-term project.

The clock was designed and built by South Melbourne company Neon Electric Signs and installed in 1961 on behalf of Nylex.

By March 2004 the sign had not been operating for several years and was listed on the Victorian Heritage Register.

In August 2004 the sign was sold to Nylex by Australian Neon Signs, and in September the silos precinct underneath was sold for a reported $8.75 million.

Over the following years the clock was restored and switched on, but then subsequently switched off again as technical issues plagued the ageing clock.

In December 2007 the clock, which reportedly cost $40,000 per year to run, was turned off due to Nylex going into receivership.

There are no details yet of exactly how the clock will feature in the redeveloped site.