HOW COMMERCIAL REAL ESTATE IS RESETTING — AND WHAT IT MEANS FOR YOU
FIND OUT HOW COMMERCIAL REAL ESTATE IS RESETTING
Resources
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
Developers are being courted by a state government to build the city’s biggest tower as it brings an Adelaide CBD parcel to market.
The South Australian Government has secured the adjoining sites at 274 and 275 North Terrace at the corner of Frome Road.
The state has opened an expressions-of-interest process for the parcels, by suggesting it could one day be home to the city’s tallest tower.
The sites are near the Lot Fourteen Innovation Precinct and the new Adelaide University and total 2800 square metres.
State agency Renewal SA will demolish a building at 275 North Terrace and combined the sites to create a single parcel that it envisions could be home to one or more towers to create “critical housing stock”.
“Early indications suggest the project could generate more than $250 million in construction activity and approximately $450 million in market value,” Renewal SA said.
The state said it would work with the purchaser to increase the maximum building height allowed for the site, “making it possible for this site to one day be the location of the city’s tallest tower”.
Accommodation of all types was the primary focus, but there was also opportunity for ground-floor retail, and commercial and hospitality components, it said.
The building at 275 North Terrace was owned and occupied by SA Health, which has relocated to be nearer the Royal Adelaide Hospital.
Meanwhile on the 274 North Terrace site, Budget Car Rentals is under a leaseback arrangement to allow business continuity while it considers relocating.
The single-stage expressions-of-interest process opened this month and is expected to extend into the new year.
SA Minister for Housing and Urban Development Nick Champion said it was an “opportunity developers will be dreaming of”.
“Adelaide can’t afford to have developers sit on vacant sites and the state government is no exception, that’s why we are bringing this to market as soon as possible to create new housing opportunities,” he said.
Renewal SA chief executive Chris Menz detailed the type of developer it wanted to partner with for the site.
“We will provide some high-level guardrails but are really looking for a development partner who can articulate a strong and compelling vision for the site; someone who has an excellent track record on these kinds of projects, can take ownership and is prepared to commit to outcomes in a timely manner that will help benefit and grow our city,” he said.
