The Victorian Government has privatised the Land Titles and Registry office, reaping an extra $2.86 billion for the state and giving both political parties more cash to make promises with in the lead-up to the November election.

Key points: A company owned by First State Superannuation has been granted a concession to run the Land Titles and Registry office for four decades

The money from the privatisation will be spent on new schools, hospitals and transport projects

The Opposition said the Government had grabbed the cash and raised concerns about the security of land title

Treasurer Tim Pallas said the state had granted a concession to Victorian Land Registry Services to run the office for four decades.

The new company is owned entirely by First State Superannuation, an Australian-owned fund that has already invested in the NSW land titles office.

The decision to privatise the service follows comments from Premier Daniel Andrews earlier this month that privatisation had failed consumers when discussing power prices.

There has been opposition to Labor's plan to privatise the body, with a warning of price rises for the services and concerns over privacy of sensitive information.

Mr Pallas said the state would retain control over prices for statutory land registry services and price increases will be capped at the CPI.

The funds, he said, would be used on new schools, hospitals and transport projects.

The new operators have promised data security would be the number one priority.

"We see land registries as critical economic infrastructure with strong investment fundamentals," First State Super chief executive Michael Dwyer said.

The state is also retaining ownership of essential services, including the Subdivisions, Application & Survey, Valuer-General Victoria, Land Information and Spatial Services, Government Land Advice and Coordination and the Victorian Government Land Monitor.

'Short-sighted revenue grab'

"This is an outstanding result and another vote of confidence in the Victorian economy, one that will deliver a major boost to our already unprecedented investment in schools, hospitals, road and rail," Mr Pallas said.

"While others talk, we deliver — with more funding to invest in the infrastructure Victorians need, growing our economy and creating jobs."

The privatisation follows the sale of the Port of Melbourne by the Andrews Government raising nearly $10 billion.

Shadow Treasurer Michael O'Brien said Mr Andrews was hypocrite on privatisation.

"Daniel Andrews has grabbed the cash but raised real concerns about the security of land title," Mr O'Brien said.

"Having avoided seeking parliamentary approval for this sale, Daniel Andrews simply cannot be trusted to secure the interests of Victorians and their most important family asset — their home."

A Community and Public Sector Union spokesman called the sale a "short-sighted revenue grab".

"LUV [Land Use Victoria] is a monopoly asset, and as such this commercialisation will never see the functions ever return and this poses a serious reputational risk," spokesman Julian Kennelly said.