Double Bay building to get $12m refurb after Pallas purchase
The Pallas Group has forked out $32.74 million to buy a landmark corner site on Double Bay’s Bay St and Guilfoyle Avenue, with the existing premises to be converted into its new headquarters along with retail and extra commercial space.
The developer says its proposed $12 million refurbishment of 30-36 Bay St, including the addition of two extra floors, subject to council approval, will help revitalise Double Bay.
Apart from five levels of commercial space, the newly renamed Pallas House will house a food and beverage outlet on the ground floor.
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The Pallas Group operates Pallas Capital, a structured property investment arranger and Fortis, a property developer.
Established three years ago, Pallas Capital has about $250 million in funds under management and 300 active investors. It offers returns of between 7.5% per annum for first mortgage investments and 20% plus per annum for equity in development projects.
Fortis Development Group has 15 development projects under way, split equally between Sydney and Melbourne. These projects have an expected end value of about $1.4 billion.
At Double Bay and nearby Rose Bay, Fortis has projects worth $220 million.
The Pallas Group’s 25 Sydney staff will occupy the Double Bay headquarters, with the group proposing to lease the remaining 1300sq m and the 380sq m retail space.
The Pallas House redevelopment is expected to be completed in the second half of 2020.
Ray White Double Bay agent Michael Finger says that with Double Bay’s changing face from a small-village atmosphere to a larger residential, commercial and retail hub, the facelift the Pallas House development will give the area was a strong pointer to where Double Bay would be in the next five to 10 years.
“As a resident of the eastern suburbs for 65 years … I believe that this purchase by Pallas Group will definitely inject a new dimension into this ever evolving shopping precinct,” Finger says.
This article originally appeared on www.theaustralian.com.au/property.
