Property developer Fortis buys two sites in double Bay for $50m

The property developer is doubling down on its holdings in ritzy Sydney locale as the market surges.

Pallas House in Sydney.

Boutique property developer Fortis has put more faith in Sydney’s eastern suburbs, particularly cosmopolitan Double Bay, with the acquisition of two sites in Bay St for nearly $50m.

Fortis has just forked out $10.6m for 19 Bay St, which it plans to amalgamate with an existing holding fronting 21-27 Bay St, which it bought back in April for $38.5m.

To be known as Jubilee House, the amalgamated 19-27 Bay St development will have a gross end value of around $130m and will be offered to high quality commercial and retail tenants, with Fortis planning to extend the size of the existing development approval application to include its new acquisition.

At present Fortis has development approval for a five level commercial building on the 21-27 Bay St site.

Offering more than 3180sq m net lettable area, the proposed development will be a high-quality five-storey commercial building, with retail space on the ground floor.

The development will feature dual street frontages to Bay St and Gum Tree Lane, as well as large floor plates, high quality end of trip amenities, outdoor terraced areas to the top level, as well as bicycle, motorcycle and carparking over four basement levels.

Fortis lodged amended plans for this project with Woollahra Council earlier this month.

Construction is expected to commence in the second half of 2022 once the amended DA is approved by the local council.

MHN Design Union have been appointed as the architects, with landscaping by Dangar Barin Smith.

“Our latest acquisition on Bay St gives us the opportunity to respond to the consistent demand for premium commercial space that we have seen in Sydney, especially in city-fringe locations,” said Fortis director Charles Mellick. “This will be our fourth commercial project in Double Bay, and we are confident that this development will be equally well received.

“We look forward to delivering a superior product with exceptional amenities and features to the local community.”

Positioned just 4km from the Sydney CBD, Double Bay is known for its thriving social scene.

However, Mr Mellick would not be drawn on the asking rents for Jubilee House but said rents would reflect any brand new AAA building that boasts expansive whole floor plates, the best end of trip facilities and quality food and beverage retail on the ground floor. “There is also an ample amount of carparking which is a luxury in Double Bay,” he added.

The suburb boasts excellent amenities and is well serviced by transport, offering easy access to the Double Bay ferry wharf, while Edgecliff train station is a 10-minute walk away.

Double Bay is also known for maintaining a unique village feel, surrounded by high end boutiques and retailers.

The expected end value of Fortis’ Sydney projects under construction or under a planning proposal is $1.25bn, with a further $1bn pipeline of work in Melbourne.