Sydney developer Fortis has expanded its footprint in Sydney’s eastern suburbs with the purchase of two development sites for a combined $38 million.
Fortis, led by Patrick Keenan, will redevelop the sites in Edgecliff and Double Bay into commercial and retail space in the sought-after city fringe locations.
The developer picked up the 1,470sq m Edgecliff site, located between 80-84 and 90 New South Head Road, from local businessman Nick Politis for $24 million.
It now has plans for a $12 million upgrade to refurbish the existing building and add additional levels to be create a 3,200sq m site, with construction on this site is expected to commence in 2021.
At its newly-acquired site in Double Bay, located at 2 Guilfoyle Avenue, the existing building will be refurbished for $6 million and will include three floors of boutique offices along with a retail-focused ground floor.
The 1,200sq m property complex was sold by the Andrew Boyarsky's ANKA Property group for $14 million.
The projects will now push the end value of its Sydney projects currently under construction or under a planning proposal to $900 million, with a further $800 million pipeline of work in Melbourne.
Fortis director Charles Mellick said despite the impacts of the pandemic the CBD will continue to act as the heart of cities.
“We are confident that well-connected fringe properties will gain huge traction in the next few years as businesses consider moving closer to their place of residence,” Mellick said.
“We foresee an increased demand for smaller, boutique office buildings and are gearing up to respond to it with our newly acquired sites.”
Fortis is the development arm of the private Pallas Group, which itself has bought $260 million worth of commercial fringe assets since early 2019.
Once developed the assets will have an expected end value of circa $750 million.
“Our new Edgecliff and Double Bay sites have expected end values of $55 million and $48 million respectively, and we are excited to deliver these to the market in the near future,” Mellick said.
Other projects by Fortis under development in Sydney include No.1 Carlisle in Rose Bay, Marmont and Pallas House Sydney in Double Bay, and Colindia Avenue in Neutral Bay.
In Melbourne, Fortis last month paid $19 million for a site in inner-Melbourne’s Richmond on which it will build a ten-level mixed-use project.
Fortis said its plans for that site will commence in 2022 with a planning application expected to be submitted in early next year.
Its other projects across Melbourne include a 37,000sq m commercial precinct in Clifton Hill and the $38 million, nine-level Pallas House in South Melbourne.
Fortis also has a number of residential projects with sites in Brighton, Toorak and South Yarra as well as two completed apartment buildings in Glen Iris and one in Malvern.