- The 1,850sqm Cremorne site was acquired for $26.9M
- Will offer a net lettable area of 9,250sqm
- Fortis currently has $1B worth of projects across Melbourne
As part of its expansion into the Melbourne commercial property space, Fortis has acquired a new site in the small inner suburb of Cremorne, as part of a $130 million project.
The 1,850sqm site at 65-81 Dover Street was acquired for $26.9 million and once completed will offer eight stores of commercial space with retail on the ground floor – representing a net lettable area of 9,250sqm.
Tope Lane originally acquired the site back in 2019 as part of an amalgamation of seven separate parcels of land, with the company obtaining planning approval late last year before divesting the site.
Despite the sale, Tope Lane will assist Fortis in an advisory role.
“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,” said Tope Lane Director Kyle Reeve.
Construction of the $40 million new build is expected to commence later this year.
Fortis Director Charles Melick said the Dover Street site is the company’s sixth development in Melbourne. He says demand for high-quality offices in city-fringe locations has increased significantly in recent times.
“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,” he said.
“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.”
Charles Melick, Fortis Director
Fieldwork Architects have been tasked with designing the development, which will include full floor plates up to 1,350sqm with wraparound terraces along with smaller office spaces from 300sqm, which target businesses downsizing their office space.
Colliers’ Ben Baines, who negotiated the transaction along with Ted Dwyer and Peter Bremner, said the sale reinforces the strength of Melbourne’s city-fringe commercial market.
“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,” said Mr Baines.
“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,” added Mr Dwyer.