Continuing its expansion in Melbourne’s commercial property space, Fortis has acquired a new site in Cremorne, VIC for $26.9 million.
Located at 65 – 81 Dover Street, the 1,850sqm site will offer premium commercial and retail space in the sought-after city-fringe location. The transaction was negotiated by Ben Baines, Ted Dwyer and Peter Bremner of Colliers.
The site was originally acquired by Tope Lane in late 2019 with the amalgamation of seven separate parcels of land. Tope Lane obtained planning approval in late 2020 before strategically divesting the site.
“The project has been a long time in the making and we are thrilled that Fortis will be able to complete the delivery of this landmark Cremorne office building” says Kyle Reeve, Director, Tope Lane. Tope Lane will continue to assist Fortis in an advisory role.
Offering 9,250sqm of NLA, a $40 million new build at the site will comprise eight storeys of commercial space, complemented by a retail offering on the ground floor. Construction is anticipated to commence later this year.
“The Dover Street site is the sixth commercial property being developed by Fortis in Melbourne, a direct result of the increasing demand for high quality offices in city-fringe locations,” says Charles Mellick, Director, Fortis. “Cremorne is an area with fantastic local amenity that will benefit from premium office space, as businesses continue to move into city-fringe locations that are easily accessible. With an expected end value of more than $130 million, this development is a significant addition to the $1 billion worth of Fortis projects currently underway in Melbourne,” says Charles Mellick, Director, Fortis.
Designed by Fieldwork Architects, the development features an extensive street frontage, ground floor F&B retail offering and market leading end-of-trip facilities. The design includes full floor plates up to 1,350sqm with wraparound terraces to selected levels and expansive views of the CBD. Smaller office spaces from 300sqm will also be available to cater to businesses downsizing in a post-Covid market.
Situated less than 3km from the Melbourne CBD, the site offers easy, direct access to key business districts in Melbourne. It is a short walk away from tram stops and both East Richmond and Richmond train stations, and enjoys freeway access. Other local amenities include a variety of restaurants, bars, pubs, supermarkets and retail options on the nearby Swan Street and Bridge Road.
Mr Baines said the sale further reinforces the strength of the city-fringe commercial market which has been buoyed by insatiable leasing activity at a number of buildings currently under construction.
He adds, “Since mid-2020, it has been evident that developers are looking at the city-fringe as the real benefactor, and a place where tenants want to work,” he said. “Appointed by Tope Lane to run an off market invitation only process, Colliers identified Fortis as a suitable buyer given our in-depth understanding of their current buyer mandates and ability to transact in a professional and timely manner. The fact we were able to conclude a sale prior to any official launch is again a testament to the Cremorne office development market.”
“With a number of remaining active buying mandates from developers and owner occupiers, we anticipate further activity and growth in the city-fringe commercial development site market this year,” says Ted Dwyer, Colliers.
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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