Pallas Group have snapped up a corner site in Sydney’s Double Bay for $32 million with plans to redevelop the building as its headquarters in the second half of next year.
The property, at 30-36 Bay Street, currently comprises a ground floor and three levels.
The group says it has a $12 million plan to revamp the property, to be named Pallas House, with plans for two additional levels.
Pallas Group, parent company of structured property investment arranger Pallas Capital and property developer Fortis Development Group, will operate across the top two levels.
When complete the development will include both commercial and retail space with 2,586sq m across five levels, along with food and beverage offerings on the ground floor.
Fortis Development Group’s director Charles Mellick says Fortis has a number of development projects in the area worth around $220 million, including 319 New South Head Road Double and 33 Newcastle Street in Rose Bay.
“This property was of particular interest to us,” Mellick said of the purchase.
“It's in one of the best locations opposite the park, next door to other great vendors and has the capacity to house large commercial floor plates otherwise not available anywhere else in Double Bay.”
Commenting on the sale, Ray White Double Bay founder Michael Finger described the purchase as a “a game changer” for the precinct.
“[It's...] a very strong message to where Double Bay will be in the next five to ten years.”
Nearby, development plans for Gaden House at 2A Cooper Street Double Bay have been submitted to Woollahra council.
The Howe architect-designed proposal includes two extra floors of commercial on top of the existing three-storey building.