Gurner, Kennards Launch $1.25bn Adelaide Precinct

Multi-billion dollar developer Gurner is moving into the Adelaide market with a partnership with Kennards Self Storage for a $1.25-billion mixed-use CBD precinct.

Kennards owns the 1.7ha former Australia Post site at 237 Grote Street in Adelaide and will team with Gurner to redevelop into a mixed-use precinct.

A design competition is under way to build out plans for more than 750 apartments across four towers, a five-star hotel, 15,000sq m of commercial space, an entertainment and recreation public plaza, as well as a self storage component.

Gurner founder Tim Gurner said the carbon-neutral development would offer something unique to the Adelaide market. 

“This is an incredible site and we could not be happier to be partnering with such iconic Australian success stories in Kennards and Sam to bring a shared vision for the development to life—we’ll be creating something very ambitious, something that hasn’t been done before in this sector,” Gurner said.

“The main focus of this city-changing site will be a transformative public realm that will become a key attraction for Adelaide CBD.

“As we do with all our projects, we’ll be prioritising leading amenities for residents—they’ll have access to entertainment, retail and co-working spaces, as well as our signature Private Club offering, in a destination that puts them on the doorstep of everything Australia’s most liveable city has to offer.”

The site includes a 24,000sq m six-level building originally constructed for Australia Post for mail distribution, but the building eventually became obsolete. 

Kennards will repurpose the Australia Post building, with three street frontages, into a next-generation storage facility, which will be integrated into the masterplan for the expansive site. 

Adelaide is a hive of development activity as more big-name developers move into the South Australian market. The city was named the third-most liveable city in the world recently.

“We certainly see Adelaide as one of Australia’s cultural epicentres—it’s an amazing city and we are looking forward to delivering something special there, and continuing to push the boundaries in not just the residential space but across service, amenity, hospitality and lifestyle,” Gurner said.

“This is a very significant transaction in terms of scale and value for the Adelaide market, which reflects the confidence we have in the market and its fundamentals—we have been waiting for the right time to enter South Australia, and we think that time is now.”

Kennards Self Storage chief executive Sam Kennard said the site was purchased in 2020 following a protracted search for the “right CBD location”.

“Originally we had identified an opportunity to re-purpose the existing building into self-storage and planned to subdivide and sell the surplus land, but Covid allowed us the time to take pause and reflect, and we soon realised the site had the potential to become a city-shaping project,” Kennard said.

“We approached Gurner as part of a small EOI process and their vision for the site absolutely blew us away—there is no doubt their bold proposal will create a new landmark for Adelaide’s CBD.

“We are delighted to be partnering with such a forward-thinking developer with whom we can collaborate and create a unique precinct for Adelaide and a first for our industry at the same time.”

While there are no approvals in place, existing zoning would allow the development of a mixed-use precinct on the site.