Fortis bolsters Queensland development pipeline
Fortis has purchased two inner east Brisbane development sites including an ex-boxing ring it will rebuild as its Queensland headquarters.
The properties – in Kangaroo Point and Newstead, the latter acquired last April – will make way for the Double Bay based group’s first local projects.
“The last few years have been exceptional for Fortis, as we expanded our profile across the eastern seaboard with premium projects in Sydney and Melbourne,” director, Charles Mellick, said.
“Launching in the Brisbane market was a natural progression for us, allowing us to introduce the Fortis approach to new markets and audiences,” he added.
The two projects will be funded by Fortis’ sister division, non-bank lender, Pallas Capital.
Both companies fall under the Pallas Group umbrella.
All are directed by Mr Mellick, Patrick Keenan and Dan Gallen.
Queensland HQ
The first building Fortis will develop, a Premium grade office at 12 Kyabra Street, Newstead, will dub as Pallas Group’s state headquarters.
The 921 square metre plot – accommodating a warehouse which until a 2019 fire was occupied by Fortitude Boxing Gym, cost $5.775m 10 months ago.
The developer has called in Woods Bagot to redesign a permitted 11 level timber tower penned by Cottee Parker.
It is intending 13 storeys with lower level retail, all up containing about 4500 sqm.
Construction could start mid-year.
Fortis speculates the end value will circle $65m (story continues below).
“The site…offers convenient access to the Newstead River Walk and is a short walk…from the Gasworks Plaza, James Street precinct and Fortitude Valley train station,” Mr Mellick said.
The acquisition comes three months since the developer purchased a Manly site for an office Pallas Group will also part-use.
The company also occupies its own offices at Double Bay and South Melbourne.
Kangaroo Point apartments
Meanwhile at Kangaroo Point – Fortis has picked up a 1197 sqm, flood-free site (pictured, top) at 44 O’Connell Street, on the banks of the Brisbane River.
With a six level older style building containing 15 strata titled flats, it is earmarked for a 16 storey tower with 14 full floor dwellings, a double storey penthouse, wellness centre, pool and pontoon with a private mooring.
The Joe Adsett Architects proposal also includes 39 car parks across three floors.
Agent Simon Caulfield of Place Estate Agents marketed the potential for the proposed units to sell for over $35,000 per sqm.
Fortis estimates this development’s end value will circle $100m.
“Our project is Kangaroo Point is a rare offering, this being an absolute riverfront site with no public parklands or roads in front of it,” Mr Mellick said.
“The timing is right as we see record-breaking activity in the off-the-plan luxury market in Brisbane, alongside record prices being achieved in square metre rates”.
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