Fortis has received the green light to develop a new office building in South Melbourne amid demand for premium office space in city-fringe areas.
The property developer owned by Pallas Group has secured planning approvals from the City of Port Phillip for the $50 million project located at 122 Moray Street.
The site was acquired in an off-market transaction towards the end of 2021 for $9.25 million.
The seven-storey building, designed by Fender Katsalidis, will offer Grade A office space and retail activation on the ground floor.
It will feature a winter garden on the lower floors, expansive terraces, and premium end-of-trip facilities, providing a vibrant work culture for employees.
The project will present an enviable composition of location, quality, and amenities, and will offer uninterrupted views of the CBD.
According to Fortis Director Charles Mellick, the demand for premium office space in city-fringe areas such as Cremorne and South Melbourne remains robust.
“We have seen evidence of this activity through our own projects, as well as some major deals in the industry over the last year, which has informed the commercial project activity at Fortis,” he said.
Mellick added that the project will facilitate a vibrant work culture, at a time when businesses are looking for ways to make the commute to work worthwhile for their employees.
The site offers approximately 700 sqm in area and is situated two kilometres from the Melbourne CBD, with easy access to arterial roads and key business areas.
It is also within walking distance of multiple public transport options and retail precincts. The project will provide 3,795 sqm in NLA and is scheduled to commence construction in October.
The development of the site will be funded by Pallas Capital, a real estate financier and investment manager, and the parent company of Fortis.
South Melbourne Market and the upcoming ANZAC station are also nearby neighbourhood precincts.
The project is set to meet the demand for premium office space in city-fringe areas, where businesses are looking to provide their employees with a vibrant work culture.
With the green light from the City of Port Phillip, Fortis is looking forward to delivering the project to the market in the next few years.