The transaction was facilitated by Ben Baines, Ted Dwyer and Daniel Wolman of Colliers.
“The immediate area continues to grow, with Colliers alone having sold four other sites within a few hundred yards in the past 18 months, including the 8 Brighton Street site in Fortis,” said Mr. Dwyer.
The second acquisition at 122-132 Moray Street in South Melbourne was purchased for approximately $10 million from a private seller in an off-market transaction. This is Fortis’ fifth commercial project in the suburbs.
The 697m² site is located close to the future ANZAC tube station, the shopping districts of Coventry Street and Clarendon Street and the South Melbourne Market.
Fortis also plans to develop the site into a boutique office space in a seven-storey building with a retail offering on the ground floor. A planning application is expected to be filed within the next three months and development is expected to be completed by the end of 2024.
Both sites were acquired towards the end of last year.
“These two acquisitions play an important role in adding quality assets to our growing portfolio,” said Charles Mellick, Director of Fortis.
“We already have such a portfolio of sites in South Melbourne, and 122-132 Moray Street plays an important role in ensuring that we continue to meet market demand, addressing the shortage of high office space range in the region.”
Mr Mellick said demand for quality commercial space in the outskirts of the city had increased even before the pandemic.
“Over the past few years, we have witnessed increased demand for high-end commercial office space on the outskirts of town in Melbourne from companies wishing to work closer to home, and the pandemic has made no difference. only reinforce that,” he said.
“We are seeing continued demand for these assets which are primarily mid-rise buildings, with a particular focus on amenities and external lounging areas for our tenants.”
Non-bank lender Pallas Capital (the parent company of Fortis) is financing the acquisition and development of these projects.