Sydney developer Fortis has doubled down in Melbourne, pushing the end value of its projects in the city to $1 billion with the acquisition of two new city fringe sites.
It has paid a combined $17 million for the prime development sites in sought-after South Melbourne.
Fortis is planning to develop $112 million worth of projects offering premium commercial and retail space on the sites at 313-317 Kings Way and 34 Eastern Rd.
It already has four other sites under development in the South Melbourne precinct.
The Kings Way site, spanning a total area of 330sq m, was acquired for circa $5 million and is earmarked for an 18-level office building valued at $65 million.
Featuring full floorplates, the 4600sq m building has been designed by Elenberg Fraser to offer views of Albert Park and the CBD, as well as dedicated end-of-trip facilities for tenants, basement parking and ground floor food and beverage activation.
An application for a planning permit for the Kingsway site will be lodged in August.
Fortis’ second new site, on Eastern Road, spans 855sq m and was acquired from H. Co Property for $12 million. It will be redeveloped into a seven-level, 3890sq m office building also with ground floor retail space, with an end value of $47 million.
Designed by architecture firm Fieldwork it will feature cascading landscaped terraces, car parking and end-of-trip facilities.
A planning permit is already in place for the site and construction is expected to commence in late-2021.
The latest acquisitions reinforce Fortis’ strategy of developing well-connected fringe properties where demand is strong as organisations choose to move closer to where employees live and socialise.
“Our new sites in South Melbourne are a response to this demand for premium boutique offices that offer an enviable composition of location, quality and amenities,” Fortis director Charles Mellick said.
Fortis has acquired approximately $33 million of commercial assets in South Melbourne during the past 12 to 18 months. Together, the assets will have an expected end value totalling circa $180 million once developed.
Late last year it also purchased a site in the inner-Melbourne suburb of Richmond for $19 million with plans for a 10-level mixed-use project.
Among its other Melbourne projects is a 37,000sq m commercial precinct in Clifton Hill and the $38 million, nine-level Pallas House in South Melbourne.
Additionally, Fortis—the development arm of the private Pallas Group—has a further $1.25-billion pipeline of work in Sydney.
