Private developer Fortis has expanded its footprint in Sydney’s eastern suburbs with the purchase of two development sites for a combined $38 million.
The sites at 80-84 and 90 New South Head Road, Edgecliff and 2 Guilfoyle Avenue, Double Bay will be upgraded and redeveloped into commercial and retail space in the sought-after city fringe locations.
Fortis director Charles Mellick said while the CBD areas will continue to be the heart of capital cities, “we are confident that well-connected fringe properties will gain huge traction in the next few years as businesses consider moving closer to their place of residence”.
“We foresee an increased demand for smaller, boutique office buildings and are gearing up to respond to it with our newly acquired sites,” Mr Mellick said.
Fortis is the development arm of the private Pallas Group, which itself has bought $260 million worth of commercial fringe assets over the past 18 months.
Under the plans, Fortis, which paid $24 million for the 1470 square metre property at Edgecliff from businessman Nick Politis, will undertake a $12 million upgrade to refurbish the existing building and add additional levels to be a 3200 sq m site.
The 1200 sq m property complex at 2 Guilfoyle Avenue in the neighbouring suburb of Double Bay was sold by the Andrew Boyarsky’s ANKA Property group for $14 million. The existing building will be refurbished for $6 million and will include three floors of boutique offices along with a retail-focused ground floor.