The eastern suburbs were hit hard a decade ago when the opening of the Westfield Bondi Junction shopping center emptied the precinct of its big fashion stores. It was further decimated by the global financial crisis of 2008, which pushed rents and then vacancy rates to dizzying levels.
In the years that followed, the area focused on rebuilding by opening smaller shops and increasing the number of internet-ready food and restaurant businesses.
Developers have also moved in as older apartment blocks and amalgamated sites have come on the market to take advantage of demand for more luxurious mixed-use residential properties.
One of the latest sales, by growing Fortis, added another site in nearby Double Bay.
As part of the deal, Fortis acquired 2-10 Bay Street and 294-298 New South Head Road in Double Bay for $82 million.
The site will be Fortis’ sixth project in the port suburb on the outskirts of the city and has secured development approvals for a residential project comprising boutique apartments on four levels, with basement parking for each residence and a Ground floor retail valued at approximately $185 million upon completion.
The substantial 1,836 square meter corner site comprises four freestanding properties with three frontages on New South Head Road, Bay Street and Brooklyn Lane.
It has development approvals for a residential project comprising boutique apartments on four levels and retail on the ground floor. Construction on this project is expected to begin in July 2022, with the demolition of existing buildings on the site completed.
Pallas Capital is the parent company of structured debt and equity manager Pallas Capital and developer Fortis and will finance the acquisition and construction of the project.
The expected final value of Fortis projects in Sydney under construction or as part of a planning proposal is $1.5 billion, with an additional works pipeline of $1.15 billion in Melbourne.
“Fortis has acquired several sites in Double Bay over the past few years for a mix of residential and commercial projects. The 2-10 Bay Street site is our newest acquisition, and we are delighted to add it to our portfolio,” said Charles Mellick, Director of Fortis.
Fortis has also secured the joint venture of Neil Perry and Baker Bleu as the anchor tenant of its newly built development at 2 Guilfoyle Avenue in Double Bay. The lease for the 260 square meter space was secured for an initial term of 10 years, and the development is now 100% pre-committed.
Fortis paid $14 million for the site at 2 Guilfoyle Avenue which overlooks Guilfoyle Park, and the development is undergoing a $10 million renovation.