Sydney-based Fortis swoops on Richmond development site

Sydney-based developer Fortis has snapped up a development site along the Richmond railway line for around $19 million.

A project for the 1298-square-metre site at 2-8 Brighton Street was originally mooted by ICON Developments and records show Yarra City Council issued a permit for a revamped project earlier this year.

ICON has flipped the site and Fortis is now planning a $90 million mixed-use project bordered by Little Lesney and Wiltshire streets near the Church and Swan street intersection.

Yarra City Council issued a permit for a revamped project earlier this year.

The off-market deal was done by Colliers International agents Ben Baines and Ted Dwyer, who declined to comment.


Fortis director Charles Mellick said plans for a fresh 7000-square-metre, 10-storey project will be submitted to planning next year with construction anticipated for 2022.

Fortis, the development arm of boutique fund manager Pallas Capital, has $800 million worth of projects underway in Melbourne, including a new South Melbourne headquarters and a redevelopment of the industrial corner of Smith Street and Alexander Parade in Clifton Hill.

Auction action

The first post-lockdowncommercial auction took place on Wednesday at Perini Tiles showroom, at the west end of Bridge Road.

The auction, managed by Gorman Commercial agents Stephen Gorman and Tom Maule, attracted about 100 people who were spread out, using witches hats as a distance guide.

The first post-COVID commercial auction took place on Wednesday at Perini Tiles showroom.
The first post-COVID commercial auction took place on Wednesday at Perini Tiles showroom.Credit:

Seven bidders competed for the 613-617 Bridge Road property, which sold for $5.575 million – reflecting a yield of 2.8 per cent.

Shortly after, Teska Carson’s Matthew Feld and Michael Ludski held an auction at 466-468 Glen Huntly Road, Elsternwick. Four bidders competed for the property, which sold for $2.33 million – $830,000 more than the reserve. A local investor/developer bought the 198-square-metre corner site.

Foti in Flockhart

The Foti family is selling a development site down by the Yarra River at 42-50 Flockhart Street, Abbotsford.

42-50 Flockhart Street in Abbotsford is being sold by the Foti family.
42-50 Flockhart Street in Abbotsford is being sold by the Foti family. Credit:Artist’s impression

The 404-square-metre site has 140 metres of river and park frontage and comes with a permit for a five-level office building.

Records show the Foti family, through investment vehicle Stock Corporation, paid $6.2 million for the car park in early 2018 and obtained a permit late in 2019.

JLL agents Josh Rutman, James Thorpe, Steve Kelly and Mingxuan Li are handling expressions of interest and are expecting around $7 million.

Across the street, Forza Capital has applied to build an 11-storey office tower above the 470-bay car park it bought two years ago.

Owner occupiers

There is plenty of change afoot in Richmond with several owner-occupiers calling time on offices they’ve held for many years.

Psychiatrist Andrew Stocky is selling his former office building at 266-272 Church Street near the Bridge Road intersection.

The 623-square-metre office is on a 535-square-metre piece of land on the corner of Berry Street. It is zoned Commercial 1 and is expected to fetch around $5-5.5 million.

Teska Carson agent Matthew Feld and Morley Commercial agent Josh McMullin are handling expressions of interest, which close on December 9.

Also recently listed, on the west Richmond border with East Melbourne, is architect Gregory Burgess’ warehouse office at 10 York Street. The 580-square-metre twin-peaked roof warehouse was built in the 1920s on a 893-square-metre lot. It’s divided into three spaces, including studios, meeting rooms, open plan work spaces and an apartment.

Nelson Alexander Commercial agents Arch Staver and Damien Theisz are handling expressions of interest, which close on December 14. It’s expected to fetch around $4-$4.4 million.

It is currently only partly leased but could earn up to $150,000 if fully occupied.

Gallery HQ

The Alcaston Gallery will be establishing a new headquarters in a strata office at 50 Market Street.

50 Market Street, Melbourne: the site of Alcaston Gallery's new HQ.
50 Market Street, Melbourne: the site of Alcaston Gallery’s new HQ.Credit:

The gallery’s owner, Beverley Knight, told Capital Gain finding “beautiful new office space” for her staff was a priority this year.

Alcaston Gallery must move from 11 Brunswick Street by February next year. Ms Knight said a new gallery will open in April but she’s not yet ready to reveal the location of her new space.

Colliers International agent George Davies, who sold the property with Chris Ling and Anthony Kirwan, said there were 80 enquiries and three unconditional offers made for the office, which sold for $850,000.

Mr Davies said it set a new $9444-a-square-metre record for the building on the corner of Flinders Lane opposite Cbus Property’s new Collins Arch towers.

Since inspections reopened last month, several strata offices have sold, many to owner-occupiers keen to get ready for 2021.

In Docklands, several suites have sold in 838 Collins Street next to Myer’s head office.

Tiga Commercial sold six adjoining offices – 1.16-1.21 – to a Brisbane-based business keen to establish a Melbourne outpost.

Tiga Commercial agent Martin Leong, who struck the new agency’s first deal with David Sia and Evolve’s Gary Cakir, said the vendor was a Chinese investor who returned home to China and sold at a loss.

Records show the Changsha-based Fei Chen bought the six offices, covering 380 square metres, in 2014 for $2.94 million and sold this year for $2.6 million.

Colliers have also sold four suites in the building. Three offers were made for 2.24-2.26, which sold for $1.128 million to a local investor.

Separately, another 80-square-metre suite on level 2 – 2.16 – sold for $610,000 to an architect moving from South Yarra.

Three shops

A development site in Hampton that collapsed property developer Steller couldn’t make work in 2018 is now back on the market.

Six shops at 466-472 Hampton Street in the Hampton Hill precinct are expected to fetch more than $8 million.

The 1358-square-metre site has rear access from both Mills and Willis streets. It’s zoned Commercial 1 and could be developed up to four storeys, which would provide bay views.

The first three shops at No.466-470 were sold by Steller in early 2019 for $3.93 million. The new owners have since joined forces with the neighbours to sell an altogether bigger and more attractive development site that will transform the low-rise village.

Steller, run by Nicholas Smedley and Simon Pitard, had already developed other projects along Hampton Street. The company collapsed in June 2019, leaving more than a dozen development sites to repay $285 million owed to funders.

Fitzroys agents Mark Talbot and Shawn Luo are handling expressions of interest, which close next Thursday.

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