This article is from the Australian Property Journal archive
FORTIS has cemented its expansion in the Queensland market with the acquisition of two new sites in Brisbane’s Kangaroo Point and Newstead, which will be developed into residential and office projects worth $165 million combined.
Both projects will be funded by Pallas Capital, the non-bank lender arm of Pallas Group, Fortis’ parent company.
A development application for the 1,196 sqm riverfront site on 44 O’Connell Street in Kangaroo Point, on the edge of Brisbane’s CBD, is expected to be lodged by March. The circa $100 million project will feature 14 levels with luxurious full-floor apartments in addition to a two-level penthouse.
It will offer residents a wellness centre, a riverfront pool and outdoor entertaining space, a pontoon with a private mooring, parking across three levels, and a private rooftop and pool for the penthouse. The site itself offers 20 metres of dedicated Brisbane river frontage and is near the upcoming $190 million Green Bridge in development by Brisbane City Council, directly linking Kangaroo Point to the CBD.
Fortis director Charles Mellick said launching in the Brisbane market was a “natural progression” after expansion through the Sydney and Melbourne markets.
“Our project in Kangaroo Point is a rare offering, this being an absolute riverfront site with no public parklands or roads in front of it.
“The timing is right as we see record-breaking activity in the off-the-plan luxury market in Brisbane, alongside record prices being achieved in sqm rates.”
In Newstead, two kilometres from the city, Fortis is planning a mixed-use $65 million development on 12 Kyabra Street in that will offer commercial office space and extensive ground floor retail activation, and will also become the Queensland headquarters for Pallas Group.
Acquired for circa $6 million, the 921 sqm site has existing development approvals for an 11 storey commercial development, but an amended DA was lodged with Council in early February with about 4,500 sqm of net lettable area.
Construction on the project is expected to commence in middle of this year.
The transactions were negotiated by Simon Caulfield from Place Kangaroo Point for the Kangaroo Point site and Clinton Mallon from Elders Commercial for the Newstead site.
The expected end value of Fortis projects currently under construction or under a planning proposal is $5 billion nationwide. It has just secured approval for two new mixed-use projects worth a total of $300 million in Melbourne’s Richmond, including a 12-level mixed-use tower and an 11-storey office building.
