54a3b56f-ba60-4bad-bab6-b5aefcd9b1ad

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Sydney-based boutique developer Fortis is furthering its exposure to Melbourne’s fringe office market, lodging plans for a $65-million commercial building in South Melbourne.</p><p>The developer plans to build a 18-storey, premium-grade commercial building on a 330sq m, pentagon-shaped site at 313-317 Kings Way. </p><p>Fortis has moved quickly to lodge plans, designed by Elenberg Fraser, after picking up the South Melbourne site for <a href="https://www.theurbandeveloper.com/articles/fortis-melbourne-pipeline-hits-1-billion">$5 million last month</a> in a deal negotiated by Savills.</p><p>The planned building will also offer “uninterrupted views” of Albert Park, Port Phillip Bay and the CBD, as well as basement parking and dedicated end-of-trip facilities for tenants. </p><p>Non-bank lender Pallas Capital, Fortis’ parent company, funded the acquisition of the site and will now fund construction.</p><p>Fortis director Charles Mellick said the project, offering a combination of luxury whole-floor tenancies, would add to the developer’s growing portfolio in South Melbourne, where the company is delivering projects on four other sites.</p><p>“Since 2020, [we] have acquired approximately $33 million of commercial fringe assets in South Melbourne,” Mellick said.</p><p>“These assets will have an expected end value of circa $180 million once developed. </p><p>“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.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/b9d1e65f-ac1f-4a16-9f9d-e88fc97ab042.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲  The pentagon-shaped island site has three street frontages on Kings Way, Kings Place and Cobden Street. Image: Elenberg Fraser</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Among its current projects is a $38-million, nine-level office at 67-69 Palmerston Crescent—a site it acquired in January for $8.55 million.</p><p>Fortis is also building a six-level office building at 18-22 Thomson Street, with an expected end value of $27.5 million.</p><p>At 34 Eastern Road, the developer is also planning a $47-million,  seven-level, 3900sq m office building on a site it paid $12 million for.</p><p>Fortis’ Kings Way and Eastern Road sites are also a short distance from the coming Anzac Metro station, Coventry Street and Clarendon Street retail districts, and South Melbourne Market.</p><p>The expected end value of Fortis’ <a href="https://www.theurbandeveloper.com/articles/fortis-development-group-brighton-street-richmond">Melbourne projects</a> currently under construction or under a planning proposal has <a href="https://www.theurbandeveloper.com/articles/fortis-melbourne-pipeline-hits-1-billion">surpassed $1 billion</a>, with a further <a href="https://www.theurbandeveloper.com/articles/fortis-edgecliff-double-bay">$1.25-billion pipeline of work in Sydney</a>.</p><p>The developer will be banking on an uptake in office space post-pandemic after Melbourne became the only CBD in the country to experience negative net demand during the past six months.</p><p>Office vacancy in the CBD hit 10.4 per cent while the similarly positioned CBD fringe markets of St Kilda Road and Southbank are now at 16.3 per cent and 15.2 per cent respectively. </p><p>Melbourne’s CBD, 2kms from South Melbourne, has the highest amount of new supply coming to the market in the next six months.</p><p>In the fringe suburb of <a href="https://www.theurbandeveloper.com/articles/tech-centric-cremorne-the-most-talked-about-office-precincts-in-the-country">Cremorne</a>, Fortis also intends to undertake a $40-million new build on an amalgamated site, 65-81 Dover Street, and deliver a commercial development with an end value of about $130 million.</p><p>Last November, Fortis paid $19 million for a 1300sq m corner site at 8 Brighton Street in neighbouring Richmond with plans for a 10-level mixed-use project.</p></div></div></div></div></div>

  Fortis is furthering its exposure to Melbourne’s fringe office market, lodging plans for its fifth project in the area...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Pallas Group have purchased a prominent corner site in Melbourne’s Clifton Hill for $32 million, flagging plans to redevelop the site into a $300 million commercial precinct. </p><p>The property, at 592-600 Smith Street, will house a 37,000sq m mixed-use development made up of commercial and retail space, including a casual dining precinct across three levels. </p><p>The Bates Smart-designed project &quot;Foundry&quot;—so named in honour of the site’s industrial heritage—will feature five different facade types that break up the commercial, retail and market hall into unique buildings.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/9af86303-2b68-47db-8c76-eae137847eb0.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Pallas Group has purchased a former foundry site at 592-600 Smith Street in Melbourne’s Clifton Hill for $32m, with plans for redevelopment as a commercial and retail space.<br></span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br><a href="https://theurbandeveloper.com/articles/pallas-group-acquires-melbourne-firm-gravitas-group">Pallas Group</a> director Charles Mellick said the site, located 3.5km northeast of the CBD, was the largest being developed by the group in Melbourne.</p><p>“The $120 million new build has the potential to create a thriving landmark that will elevate the area as a whole,” Mellick said.</p><p>Scheduled for completion in 2024, the development will include two towers offering a combined commercial space of 23,000sq m, along with a 7,000sq m food and beverage offering, and three levels of basement parking. </p><p>The deal comes on the heels of Pallas Group’s plans for a new HQ on a corner site in Sydney’s <a href="https://theurbandeveloper.com/articles/double-bay-site-transacts-32m">Double Bay</a>, snapped up for $32 million in November last year.</p></div></div></div></div></div>

Pallas purchases former foundry site in Clifton Hill for $32m ...

Pallas Capital non-bank lender landscape Australia property developer finance

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In this TUD+ Briefing, Pallas Capital executive director Dan Gallen discusses the group’s doubling of its origination capacity each year as it looks to deploy more than $1-billion in financing across 2021.</p><p>“Our rapid evolution has been from high-net-worth investors, to family office, to loan-by-loan, into now funds that we have discretion and control over subject to a set of rules,” Gallen said.</p><p>“For mortgage managers currently in the Australian real estate debt market that are moving from loan-to-loan; it is good for the time being, but not truly competitive and stable long-term fix post-pandemic.</p><p>“We are moving into that ‘long-term fix’ phase now with pools of stable capital that will allow us to continue lending through cycles as we won’t be waiting on investors to redeploy their own capital.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><iframe sandbox="allow-forms allow-scripts allow-pointer-lock allow-same-origin allow-top-navigation allow-presentation" class="embed-responsive-item" allowfullscreen="" frameBorder="0" style="max-width:574px" width="100%" height="323" src="https://www.youtube.com/embed/9CMCQJ66Yyc?rel=0"></iframe></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Throughout the pandemic non-bank lenders have continued to occupy space left as the big banks reduce their exposure to riskier assets such as shopping malls, hotels, lower grade offices and residential developments.</p><p>Gallen said the company’s “entrepreneurial flair” and close ties to the property industry was now a key differentiating factor Pallas was providing compared to its competitors vying for new slices of the market.</p><p>“Investors are looking for two things, security off their principal investment and yield, it’s that simple,” Gallen said.</p><p>“During the first lockdown, nervousness hit the market, and all of sudden liquidity from high-net-worth investors drains out of the market.</p><p>“While the nervousness remains an annoyance it is not stifling investment anymore and they are very much back in the market on the hunt for safe, successful, high yielding investments.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>You are currently experiencing </strong><em><strong>The Urban Developer</strong></em><strong> Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans"><u><strong>Click here</strong></u><strong> to learn more.</strong></a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fb872c4-2507-449c-af93-4c928c2ed849.png" width="800"/></picture><div></div></div></div></div></div></div></div>

In this TUD+ Briefing, Pallas Capital executive director Dan Gallen discusses the group’s doubling of its origination capacity each year...

Fortis development application Darling Point

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Boutique property developer Fortis has lodged plans for a $90-million apartment project in affluent eastern Sydney suburb Darling Point.</p><p>The developer plans to build a seven-level project comprising residential and retail offerings on a 1250sq m site at 1 Mona Road that it <a href="https://www.theurbandeveloper.com/articles/fortis-edgecliff-double-bay" data-mce-href="https://www.theurbandeveloper.com/articles/fortis-edgecliff-double-bay">picked up</a> for $17.5 million in 2020.</p><p>Fortis bought the site due to its position; it is close to Edgecliff Train Station, Rushcutters Bay Park, the Cruising Yacht Club of Australia, and a local schools.</p><p>It has now put forward plans for a north-facing, MHNDU-designed development consisting of six levels of one-, two- and three-bedroom apartments, above ground floor retail and commercial offerings.</p><p>All apartments in the high-end project would include external terraces or balconies, with select apartments capturing views across the city, harbour, neighbouring suburb of Paddington and surrounds.</p><p>Pallas Group, the parent company of Fortis and real estate fund manager Pallas Capital, will oversee financing of the project.</p><p>The development will actively target affluent downsizers from wealthy suburbs nearby, such as Bellevue Hill, Point Piper, Woollahra and Vaucluse at a time when Sydney’s property prices are running at record levels—they are on track to hit 27 per cent growth this year.</p><p>According to Corelogic, apartment values in Darling Point have climbed by $595,000, or 26.6 per cent, since the onset of the pandemic.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/b9c0bf19-40e4-4155-a34a-ce1f099c796c.jpg" width="1000" data-mce-src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/b9c0bf19-40e4-4155-a34a-ce1f099c796c.jpg"></picture><div><span style="align-content: center; opacity: 0.8;" data-mce-style="align-content: center; opacity: 0.8;">▲ Fortis has now lodged plans with Woollahra Council for a premium mixed use development with residential and retail offerings. Image: MHNDU</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Fortis director Charles Mellick said the updated scheme for the project has been spurred by the increased demand for luxury apartments in Sydney’s east.</p><p>“We have seen significant demand for well-appointed boutique apartments in Sydney’s east in the last year, and existing developments in these suburbs have sold out in record time,” he said.</p><p>“The plans for this site in Darling Point have been updated in response to this demand.”</p><p>Mellick said, if approved, construction on this site would begin by the end of 2021.</p><p>Fortis continues to pad out its pipeline with $2.25 billion in projects currently under construction or under planning in Sydney and Melbourne, split roughly 50/50 between residential and commercial.</p><p>The developer has long held a major focus on the expensive eastern suburbs of Sydney and Melbourne, locales like Rose Bay, Double Bay, Toorak and Brighton.</p><p>In June, alongside partner <a href="https://www.theurbandeveloper.com/articles/five-rising-sydney-property-developers-2021" data-mce-href="https://www.theurbandeveloper.com/articles/five-rising-sydney-property-developers-2021">Dare Property Group</a>, Fortis <a href="https://www.theurbandeveloper.com/articles/fortis-dare-launch-120m-piper-house" data-mce-href="https://www.theurbandeveloper.com/articles/fortis-dare-launch-120m-piper-house">snapped up</a> a 2650sq m site in Point Piper for $41 million where it is now <a href="https://www.theurbandeveloper.com/articles/dare-boutique-apartment-project-point-piper-sydney" data-mce-href="https://www.theurbandeveloper.com/articles/dare-boutique-apartment-project-point-piper-sydney">planning an 18 apartment development</a>.</p><p>In April, it bought a development site in Sydney’s Double Bay for $38.5 million to turn it into a mix-use development worth $90 million. Double Bay is also the site of its most recently completed apartment development, Marmont.</p><p>Earlier in March, it paid $28.5 million for a 2200sq m development site in Rose Bay.</p></div></div></div></div></div>

    Fortis has lodged plans for a $90-million apartment project in Sydney’s affluent eastern suburb of Darling Point...

Pallas Group’s Fortis has added two more commercial sites in the Melbourne CBD fringe suburbs to its portfolio, banking on increasing demand for office space in the locations.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Pallas Group’s Fortis has added two more commercial sites in the Melbourne CBD fringe suburbs to its portfolio, banking on increasing demand for office space in the locations.</p><p>The sites in Richmond and South Melbourne, will be developed as prime office and retail projects and will eventually have a combined value of $108 million.</p><p>Fortis paid $16 million for the site at 1 Little Lesney Street in Richmond—the 907sq m site is next to another Fortis project, valued at $115 million, being developed at 8 Brighton Street. </p><p>A 12-storey tower with 5500sq m of floorspace is planned for the site.</p><p>The deal was brokered by Collier’s Ben Baines, Ted Dywer and Daniel Wolman. </p><p>“The site’s prime location, with direct access to world-class amenity, was a major drawcard for potential buyers, along with the planning flexibility,” Baines said. </p><p>“Although the site was permitted, it represented a genuine opportunity to amend to commercial office, residential apartments and-or hotel.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/18cc9256-0b39-4929-9ef8-f57b505dc9f4.jpeg" width="3525"/></picture><div><span style="align-content:center;opacity:0.8">▲ An impression of the office tower planned by Fortis for 1 Little Lesney Street, Richmond.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In South Melbourne, Fortis paid $10 million for the site at 122-132 Moray Street in an off-market transaction. It is Fortis’ fifth project in the suburb. </p><p>The 697sq m site is near the under-construction Anzac Metro station as well as the South Melbourne Market, and Church and Coventry streets.</p><p>It will comprise 2800sq m across seven storeys including retail on the ground floor. </p><p>Plans for the South Melbourne site are expected to be lodged in the first quarter of this year.</p><p>“During the past we have seen an increased demand for premium city-fringe commercial offices in Melbourne,” Fortis director Charles Mellick said.</p><p>“Our latest sites in South Melbourne and Richmond will offer a high-end point of difference to the fringe office market and add to our growing half a billion dollar portfolio of commercialassets in Melbourne.”</p><p>The demand for office space in the CBD’s fringe suburbs is growing along with the market for office properties experiencing a rise in investment. </p><p>“We expect significant activity in this key market in 2022,” Collier’s Daniel Wolman said.</p><p>Fortis plans to retain both towers as  long-term rental income assets. </p><p>Fortis currently has a number of commercial properties in the <a href="https://www.theurbandeveloper.com/articles/fortis-melbourne-pipeline-hits-1-billion">office fringe market in Melbourne </a>with a the total end market value of those being developed or in planning of $1 billion. It has another $1.25 billion in property in Sydney. </p><p>“Our national commercial portfolio is currently well in excess of $1 billion,” Mellick said.</p><p>Pallas Group is the parent company of Fortis as well as Pallas Capital, the non-bank lender providing the funds for acquisition and development of both projects. </p></div></div></div></div></div>

  Fortis solidifies its presence in Melbourne CBD's fringe suburbs by buying up more properties for office tower development...

PALLAS GROUP