This article is from the Australian Property Journal archive
FORTIS has moved quickly to lodge plans for an 18-level South Melbourne office tower as part of its $180 million development pipeline in the city fringe suburb.
The development arm of Pallas Group bought the 330 sqm property at 313-317 Kings Way property last month for about $5 million as one of two acquisitions that take its purchases in the locale to $33 million since last year, and with an end value of about $180 million
Fortis lodged plans with the City of Port Phillip for the Elenberg Fraser-designed tower that will offer a combination of luxury whole-floor tenancies totalling about 4,600 sqm of net lettable area, with touches from landscape architects OpenWork.
With an end value of $65 million, the tower will feature ground floor food and beverage offerings and an extensive rooftop garden terrace, and offer uninterrupted views of Albert Park, Port Phillip Bay and the CBD, basement parking and dedicated end-of-trip facilities for tenants.
The acquisition and construction of the development is being funded by non-bank lender Pallas Capital, also part of Pallas Group.
“Kings Way is one of the four projects we are currently developing in this location, in response to the robust demand for high-quality office spaces in city-fringe areas,” Charles Mellick, director, Fortis said. Among those is a Thomson Street property on which it will build a six-level office building with an end value of $27.5 million.
The site is situated two kilometres from the Melbourne CBD and close to the St Kilda Road office precinct, the upcoming ANZAC metro station, Coventry Street and Clarendon Street retail districts, and South Melbourne Market.
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.
Also on the Melbourne city fringe, Fortis picked up a Richmond property that will make way for new $90 million retail, office and apartment building.
