Continuing its expansion in Melbourne’s commercial property space, Fortis has acquired two new sites in South Melbourne.
The projects will go on to offer premium commercial office space in the city-fringe location where Fortis is now developing four sites. Fortis will continue to hold these commercial buildings as long-term income producing assets.
The 313-317 Kings Way site presents an area of 330 sqm and was acquired for circa $5 million. The transaction was negotiated by Savills. A new development at the location will comprise 18 levels of premium office space, with a ground floor food and beverage activation. Designed by award-winning architects Elenberg Fraser, the development will feature full floorplate executive style office suites with uninterrupted views of Albert Park and the CBD, basement parking and dedicated end-of-trip facilities for tenants. The proposed development will offer approximately 4,600 sqm of NLA. The planning permit for this site will be lodged in August this year.
Located at 34 Eastern Road in South Melbourne, the second site was acquired from H. CO for circa $12 million. The transaction for the 855 sqm site was negotiated by Dominic Gibson of Melbourne Acquisitions. Designed by Fieldwork Architecture, the new building will feature a ground floor retail activation, with seven levels of premium office space. The development will also offer tenants cascading landscaped terraces, car parking and end-of-trip facilities. A planning permit is already in place for the site and construction is anticipated to commence in late-2021. The project will comprise approximately 3,890 sqm of NLA.
“We have witnessed strong interest in well-connected city-fringe properties over the past 12-18 months, as organisations choose to move closer to where their 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,” says Charles Mellick, Director, Fortis.
He adds, “Fortis has acquired approximately $33 million of commercial fringe assets in South Melbourne since 2020. These assets will have an expected end value of circa $180 million once developed. Our new Kings Way and Eastern Road sites have expected end values of $65 million and $47 million respectively, and we look forward to delivering these to the market in the near future.”
Situated two kilometres from the Melbourne CBD and a short distance from the St. Kilda Road office precinct, South Melbourne is a prestigious city fringe location that enjoys easy, direct access to arterial roads and key business areas. The Kings Way and Eastern Road sites are also located a short walk away from the upcoming ANZAC metro station, Coventry Street and Clarendon Street retail districts, and South Melbourne Market.
Pallas Group is the parent company of structured property investment arranger Pallas Capital and boutique developer Fortis. The expected end value of Fortis’ Melbourne projects currently under construction or under a planning proposal is $1 billion, with a further $1.25 billion pipeline of work in Sydney.
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