The site at 657-661 Victoria Road and 4-6 Wharf Road will be jointly developed by Payce and Sekisui House Australia.

Payce last week raised $98 million through the sale of a a half share of a development site in Wentworth Park. Payce has an effective 50 per cent interest in the property which forms part of a joint venture, also with Sekisui House Australia.

Last year, Mirvac Group bought a half stake in East Village, a retail centre in Zetland in inner Sydney, which was developed by Payce.

Payce general manager Dominic Sullivan said this latest acquisition brought the total area of properties held by Payce in Melrose Park to nearly 30 hectares.

"Payce has previously purchased the adjoining Pfizer, Reckitt Benckiser and Big Sister sites, each located along Wharf Road, Melrose Park," Mr Sullivan said.

"The strategic acquisition of the gateway site to Melrose Park means that Payce will now develop a proposal for a fully integrated architectural scheme for the entire Wharf Road precinct."

Payce will lodge a structure plan and planning proposal with the Parramatta City Council.

It is expected the Melrose Park site will be a multi-stage, mixed-use development, which will comprise employment, residential (including affordable and key worker accommodation), commercial office and retail uses, along with a range of new and enhanced community facilities, public parks and other wider community benefits.

"[The] council has identified Melrose Park in its draft Parramatta Employment Lands Strategy 2015 document as an area undergoing significant economic change and suitable for large-scale urban renewal, as many manufacturing industries restructure and residential areas expand to meet the demand for housing," Mr Sullivan said.

Another developer, Aqualand, is selling apartments at The Revy site in Pyrmont and a nearby site that is home to the Seven Network.