- End value of the two projects is expected to be $110M
- Eldenberg Fraser and Fieldwork Architecture will design the Kings Way and Eastern Road buildings respectively
- Fortis currently has a multi-billion construction pipeline across Melbourne and Sydney
As part of its expansion in the commercial property space in Melbourne, Fortis has announced the acquisition of two new sites in South Melbourne.
The end value of these projects is expected to total $110 million, with Fortis intending to hold these commercial buildings as long-term income-producing assets.
The first site at 313-317 Kings Way covers an area of 330sqm and was acquired for around $5 million, in a transaction negotiated by Savills. Architect, Elenberg Fraser will design the development that will house full floorplate executive style offices with views of Albert Park and the CBD. Next month, the planning permission for this site will be lodged and if approved the proposed development will offer around 4,600 sqm of net lettable area.
The second site is located at 34 Eastern Road for around $12 million, negotiated by Dominic Gibson of Melbourne Acquisitions. Fieldwork Architecture will design the building that will have ground-floor retail and seven levels of office space. The planning permit is already in place with construction due to start later this year. When completed, the building will have about 3,890sqm of net lettable area.
“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,” said Fortis director, Charles Mellick.
“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.”
Charles Mellick, Fortis director
Since 2020, Fortis has acquired approximately $33 million of commercial assets in South Melbourne with the developments expected to have an end value of $180 million. In May, Fortis acquired a site in Cremorne for almost $27 million.
The two new sites are a short way from the upcoming ANZAC metro station and near Coventry and Clarendon Street retail districts and the South Melbourne market.
Fortis, whose parent company is the Pallas Group, currently has a construction pipeline of $1 billion in Melbourne with a further $1.25 billion in Sydney.