This article is from the Australian Property Journal archive
PALLAS Group’s Fortis has continued to collect inner city development sites, picking up a Richmond property in Melbourne that will make way for new retail, office and apartment building with end value of $90 million.
Fortis paid about $19 million for the corner site located at 8 Brighton St, which spans 1,298 sqm. A planning application is expected to be submitted early in the new year, and for construction to kick off in 2022.
The transaction was negotiated by Ben Baines and Ted Dwyer of Colliers.
Located off the Church St and Swan St intersection, the triple fronted property will have more than 7,000 sqm of combined NLA and NSA with retail on the ground floor and nine levels of commercial and residential space.
“Our newest site in Richmond is a reflection of our confidence in city-fringe locations, and we are excited to expand our presence in Melbourne,” Fortis director, Charles Mellick said.
“Following on from the success of Pallas House and our other residential developments such as Balmoral and East Grove in Melbourne, we are positive that the demand for this space will continue to accelerate in the next few years.”
The development adds to the $800 million worth of Fortis projects currently underway in Melbourne. Fortis has just picked up a site in South Melbourne for a new office build, while earlier this year, Pallas Group revealed plans for a $300 million mixed use development on a 5,500 sqm Clifton Hill block. Fortis put together the combined site across multiple transactions over several years.
Other projects by Fortis in Melbourne include a residential development in Brighton on another recently acquired site, and projects in Toorak, South Yarra and Malvern.
There is also a $900 million pipeline in Sydney, where it has just bought Gaden House in Double Bay with plans for a major refurbishment of the modernist icon.
“Melbourne’s city-fringe commercial and residential markets have remained strong, even through the recent economic uncertainty. With such limited supply and pent up demand, a number of high-quality assets in strong locations are still transacting off-market,” Baines said.
Recently, Goldfields Group also paid about $19 million for 587-593 Church St in Richmond, in another deal by Colliers.
“The location within Richmond along with the activity centre zone, which permits retail, residential and commercial is what really sets this site apart from others,” Baines said.
Numerous train and tram stops are located less than 200 metres away, and the site is also a short walk away from a range of restaurants, bars, supermarkets and other amenities.
Architects SJB have aimed to reflect the property’s heritage context.
Pallas Group is the parent company of structured property investment arranger Pallas Capital and boutique developer Fortis.
