Rise of Adaptive Reuse Prompts Hickory Construction Play

When Hickory Group set up a dedicated division to handle adaptive reuse, it wasn’t to reinvent the wheel. Adaptive reuse involves repurposing existing buildings while preserving their character and heritage, a practice becoming increasingly prevelant as Australia faces mounting environmental and urban development challenges. Builders have been undertaking this kind of work since the beginning of time, Hickory managing director George Abraham tells The Urban Developer . But with increasing pressure around ESG compliance, changing market demands and ageing building stock, Hickory saw an opportunity to leverage three decades of construction experience into a specialised service. As one of Australia’s major construction and development companies since 1991, Hickory brings comprehensive capabilities to its initiative—from manufacturing components and managing development to specialised construction work. And so, h-adapt was born. The decision grew from years of complex live environment work with major clients, including projects above operational carparks, upgrading structures and maintaining facades while building above. The timing aligns with significant market shifts, as rising construction costs and supply chain instability make renovation projects increasingly attractive due to their reduced material requirements and more predictable timelines. ▲ Hickory managing director George Abraham and h-adapt director Michael Perdikaris. With mounting industry discussion around adaptive reuse and increasing support from authorities for developers to tackle ageing building stock, Hickory recognised a growing market. H-adapt director Michael Perdikaris tells The Urban Developer that existing clients are particularly receptive due to their portfolio of properties and ageing assets. The division’s backing by Hickory provides additional assurance to clients regarding service delivery and project execution. With three live projects already under way, including the South Wharf Tower upgrade and Chadstone Pavilion extension, h-adapt’s approach focuses on early strategic involvement to identify building objectives and develop upgrade strategies. The company’s vertical integration strategy, including 700 direct construction workers, enables rapid deployment of specialised teams for complex works. This approach proves particularly valuable in live environments, where Perdikaris says staging plans, clarity and communication are critical success factors. “If you can tick those boxes, there might be a disruptive portion but if that tenant or owner knows what’s happening, everyone works through it,” Perdikaris says. In h-adapt’s hotel projects, timing and operational impact are critical considerations. Delete In one recent project, the client requested two program options: one with full shutdown and another maintaining hotel operations. While shutting down could reduce a project timeline from 12 months to six, the revenue implications made this unfeasible. Instead, h-adapt developed targeted strategies, closing specific floors or sections while maintaining overall operations and scheduling disruptive works during off-peak periods. Perdikaris says this approach recognises that adaptive reuse projects must progress faster than traditional construction, with compressed timelines requiring efficient program management, setup and procurement. The South Wharf Tower upgrade shows this approach, involving a full lifecycle assessment where the client approached h-adapt seeking solutions for an ageing asset. Working with Hickory’s Strategic Projects division, the team identified building objectives and developed a comprehensive adaptive reuse strategy. But while the technical challenges can be managed through expertise and careful planning, broader industry barriers remain a concern. Abraham points to regulatory frameworks as a significant obstacle to wider adoption of adaptive reuse. Abraham says current building codes and heritage restrictions often limit innovative solutions, particularly affecting office-to-residential conversions. More flexible approaches to facade retention alone could reduce project costs by up to 20 per cent—significant when expected returns hover around 20 per cent internal rate of return. ▲ Hickory ’ s refurbishment of Hotel Indigo, a former Holiday Inn, was completed in 2020. Meanwhile, h-adapt is finding success in the hotel sector, where upgrading assets can deliver clear returns through improved star ratings and room rates. These projects, while complex, often face fewer regulatory hurdles as they maintain their original use. The team is also seeing increased interest in office upgrades, particularly around amenity improvements. “These offices know they can’t keep going the way they’re going,” Perdikaris says. “They’ve got no gym, no amenities. But adding these features isn’t simple. Put a gym on a carpark and the floor load’s totally different.” These complex upgrades require thorough assessment of structures and services, Perdikaris says. Rather than traditional tender processes that can add months to timelines, h-adapt advocates for staged early contractor involvement (ECI) approaches that allow for progressive validation of risks and solutions. Prefabrication and modern methods of construction play a key role in h-adapt’s approach to reducing waste and improving efficiency. “Prefabrication allows you to digitally design any element of the building within a millimetre of its life,” Abraham says. “If you can analyse it digitally and build a prototype well ahead of time, you can avoid waste and reduce time on site.” This precision becomes particularly valuable in adaptive reuse projects where existing structures often present unexpected variations. ▲ Some renovation work leaves h-adapt working with a “Swiss cheese concrete frame”, Abraham says. Abraham says wider adoption of adaptive reuse and the use of modern methods of construction and prefabrication require early involvement in planning and a shift in traditional procurement models “if you really want to get the highest value out of these projects”. “You can’t design a building, then decide to use modular components. If you’re thinking of modularisation or prefabrication, you’ve got to have some consideration during the design stage.” Abraham says the industry would also do well to restore architects’ decision-making power, particularly regarding adaptive reuse and sustainability. “We have really muted and nullified the true skills of an architect,” he says. “They had a really good understanding of construction technology and cost and could make decisions relating to design really quickly about what the best outcome was for that job.” Looking ahead, Abraham sees significant opportunity in the adaptive reuse sector, driven by sustainability requirements and market demands but says success requires rethinking traditional approaches to construction and regulation. With buildings accounting for approximately 40 per cent of global carbon emissions, adaptive reuse offers significant environmental benefits while meeting growing market demand for character-rich spaces. The sector’s growth potential is further supported by changing workplace patterns, rising construction costs, and increasing focus on sustainable development. “There’s going to be such an influx and demand for this type of service,” Abraham says, “and we can leverage what we already do, using the knowledge base and resourcing that has been here for a very long time to add real value to the market.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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Leon Della Bosca
Tue 14 Jan 25

Rise of Adaptive Reuse Prompts Hickory Construction Play

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