Pallas Group has successfully navigated a volatile post-Covid 19 property market by leasing out 70% of the total space in the upcoming Pallas House Sydney and 60% of the total space in Pallas House Melbourne.
The transactions have secured $2.35m in annual rental for retail and commercial leased spaces during this time, affirming Pallas Group’s confidence in the market.
“Our recent wins in the high-end commercial and retail space in Sydney and Melbourne reflect the positive sentiment in the market despite the declaration of the pandemic in March this year. Also, we believe city fringe commercial spaces have benefited from the difficulties faced by CBD tower commercial space. Pallas House in Sydney and Melbourne will create a thriving hub in their city-fringe locations, revitalising the areas as a whole,” says Charles Mellick, Director, Fortis.
Pallas Group is the parent company of property developer Fortis and structured property investment arranger Pallas Capital. Fortis has a number of other projects in the areas occupied by these two buildings, with an expected end value of about $700 million in Sydney and $700 million in Melbourne.
Pallas House Sydney occupies a landmark corner site on 30-36 Bay Street in Double Bay. It is expected to be completed early-2021. To-date the building is 70% leased, with commitments representing $1.8m of annual gross income across both retail and commercial areas.
The Double Bay site is currently undergoing an $15 million upgrade, to offer 2,350 sqm. across five levels, accommodating commercial spaces and a premium food and beverage offering on the ground floor. Occupants of the development will benefit from expansive floor plates and large floor to ceiling windows with uncompromised leafy parkside and harbour views. The site was purchased in 2019, with an expected end value of $65 million.
The site for Pallas House Melbourne was purchased earlier in 2020 for $8.6 million. A total of $550,000 of annual gross income has been pre-committed across both retail and commercial areas. Located at 67-69 Palmerston Crescent in South Melbourne, the 592 sqm corner site will house a nine-storey commercial and retail space, with an estimated end value of $40 million. Construction on the $13 million new build is expected to commence in September 2020.
Pallas House Melbourne will offer tenants over 3,200sqm. across eight levels, along with a retail space on the ground floor.
Pallas Group will occupy both buildings as its Sydney and Melbourne headquarters.
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