One year from moving into its first commercial project, Pallas House, boutique developer Fortis has expanded its appetite for office projects nationwide.
The $77-million development is the first of two completed commercial projects by Fortis in Double Bay. The developer has four others in its pipeline—three in early works and another closing in on practical completion next month.
Fortis, a subsidiary of Pallas Group, snapped up the site at 30-36 Bay Street in Double Bay for $32.7 million in mid-2019. The site was initially intended for a high-end residential project, purchased with an approved apartment scheme.
Working alongside architecture firm Lawton Hurley, Fortis was able to adapt and reuse over 90 per cent of the existing four-storey heritage building with two new levels added above.
The project was fully pre-leased prior to completion in May 2021 and is now Fortis’ Sydney headquarters with the developer occupying the building’s top two floors.
Commercial tenants, including a number of financial companies and family offices, benefit from sweeping 600sq m floor plates, and unobstructed views across Guilfoyle Park and Sydney Harbour.
Fortis associate director Avalon Nethery told The Urban Developer the project’s timing had coincided with the pandemic and the increase in demand from CBD-based businesses seeking to move their offices closer to home and to more of a local village location.
Nethery will be among speakers at The Urban Developer’s upcoming The New Workplace vSummit.
“A lot of the design was influenced by our understanding of giving the community something they would soon realise they wanted and needed, even if they didn’t see it themselves, but doing this very gently,” Nethery said.
“We referenced the original building’s design heavily so that it wasn’t too big of a change for people, but also to highlight the commitment to restoring and improving what was already there. What little that was removed was recycled and not sent to landfill.”
The project, built over a 12-month construction schedule at the height of the pandemic, was overseen by local builder Lords Group.
It involved 4200sq m of high-specification and complex full-building internal and external refurbishment and fit-out, including heavy-structure upgrades and extensions to the building as well as new base-building services, including new passenger and car lifts, retail fit-outs, amenities and end-of-trip facilities.
“We are heavily involved in the future of the project and we’re not just coming in, developing and moving on,” Nethery said.
“Pallas Group holds on to all of its commercial developments and we feel a responsibility to design and create the future heritage of a place—something that will stand the test of time and won’t be knocked down only to be replaced in the future.”
The developer moved into its new digs in Double Bay—a suburb where it has acquired multiple sites over the past few years for a mix of residential and commercial projects, midway through 2021.
The suburb has excellent amenities and is well serviced by transport with a village feel, surrounded by high-end boutiques and retailers.
“For decades, Double Bay was heavily focused on residential projects and offerings, which had eroded much of the local retail, commercial and cultural lustre—very similar to Toorak in Melbourne,” Nethery said.
“Our approach to the facade helped us to get the local stakeholders onboard who were initially overwhelmingly pro-residential. We managed to change their view.”
Fortis has been bullish in its acquisitions and its commitment to residential and commercial development with 19 acquisitions and prospective developments in Sydney, 17 in Melbourne and one in Brisbane. The expected end value of its projects under construction or in planning is around $4 billion.
Pallas House, the developer’s pilot commercial development, is now informing its growing commercial pipeline.
Nearby, Fortis has plans for a $185-million mixed-use project at 2-10 Bay Street, a $400-million project at 1-13 Cross Street and a $48.5-million project at 24 Bay Street. It is also underway on a $135-million project at 19-27 Bay Street and has completed a $44-million project at Guilfoyle Avenue.
Meanwhile, in Woollahra, Fortis has recently acquired 2A James Street and secured DA approval for a premium residential $170-million project on this site.
The 3500sq m site was acquired for about $50 million due to 12 months of negotiations with individual owners. The deal, involving 14 lots under separate ownership, is the largest ever land consolidation in Woollahra and now the largest privately held parcel of land in the suburb.
Fortis plans to build 14 luxury apartments, restore the existing terraces and redevelop the existing theatre.
Nethery will deliver a case-study presentation on Pallas House at The Urban Developer’s coming The New Workplace vSummit on Thursday, September 29.
The vSummit will include more than 15 industry experts delivering infightful presentations, case studies and panel discussions delving into the latest research and perspective on the current state of the office sector and its outlook for the future.
To register for the event, click here.
