Spinning glass

Pallas on the prowl for development sites

Sydney Morning Herald .

Sydney-based fund manager Pallas Capital and its development offshoot Fortis have snapped up more than $100 million in Melbourne and Sydney city-fringe commercial properties during the pandemic.

Pallas on the prowl for development sites

Fortis director Charles Mellick said the properties would have an end value of around $400 million after redevelopment. “We still see people moving out of the CBD,” he said.

The latest acquisition was the Appel family’s South Melbourne office building at 18-22 Thomson Street which transacted for $6.9 million.

The three-level 1970s-era office building sits on a 496 square metre site, one block back from Albert Park Lake. The property is not far from Pallas’ new headquarters on Palmerston Crescent and neighbours include Tim Gurner’s 10-level 74 Eastern apartment project.

Mr Mellick said it would be redeveloped into a $27.5 million office.

“Premium office space in South Melbourne is in great demand. We’ve already leased out 60 percent of Pallas House through off-market deals over the past four months.”

The deal was negotiated by Appel Property’s Ben Appel and Tomassi & Co’s Alby Tomassi.

Mr Appel said his family’s time as property developers had come to an end and the building had reached the “functional obsolescence” stage.

The move comes as Pallas’ property development arm Fortis received approval to go ahead with its three-story luxury apartment project in Brighton.

Read article

Related Posts

To speak to one of our Directors about investment opportunities that align with your portfolio requirements, please provide your contact details below.