[+] Innovation at Heart of ‘Global Benchmark’ Tonsley Precinct

It was the end of an era when the Mitsubishi assembly line fell silent for the final time in 2008 at Tonsley in South Australia. But it was also the beginning of a new one for the 61ha site, 10km south of Adelaide. Cars had been manufactured on the site since Chrysler acquired it in 1955. More than 930 people had been working at Mitsubishi, second and third-generation factory workers among them. But after its closure, the state government took control of the site. Renewal SA was charged with creating the Tonsley Innovation District, which opened in 2012 and continues to evolve 10 years later, halfway through its 20-year masterplan. It has been recognised as a global benchmark for redeveloping traditional manufacturing facilities. ▲ The retention of the enormous saw-tooth-roofed Mitsubishi Assembly Building (MAB) created the foundation of the innovation precinct. Renewal SA executive director of property and major projects Todd Perry says the reinvigoration of the stalled manufacturing sector has created a new high-value manufacturing and innovation precinct that is solving some major problems nationally and internationally. More than 2000 people work under the saw-tooth roof of the former Main Assembly Building (MAB). Perry says it is an eclectic mix of leading-edge research, start-ups, business incubators and government organisations. Perry says retaining the original assembly line was a “stroke of genius” because such an expansive building would never be built again. The site is also home to about 8500 students across a Flinders University campus and TAFE SA—and around 500 residents call Tonsley home. “It has had a colourful history. It started out with creative destruction through the Mitsubishi plant shutting down,” Perry explains. “The easy option there would have been to sell it for light industrial, however, a lot of poisonous and hazardous chemicals were used and contaminated a lot of the soil and land around it. The site needed extensive remediation.” ▲ In its prime, the car manufacturing site employed thousands of people. Chrysler acquired the site in 1955 and Mitsubishi took over in 1980. The state government stepped in. “The site continues to evolve, but with the same vision. It flexes with the time but the ideation of that period has largely remained sound,” Perry says. “It’s based upon innovation district methodology of the triple helix model, which champions interaction between academia, industry and government.” There are about 140 organisations in the Tonsley innovation precinct, which is carefully curated using a suitability matrix. It aims to provide opportunity for collaboration through “collision spaces”, which encourage tenants to interact. Micro-X is one such client, which is developing and manufacturing ultra-lightweight mobile x-ray equipment. Every Tim Tam produced in Australia passes through automation technology developed at Tonsley. Even the blinds that keep the sun out of the corporate boxes at Roland Garros, home of the French Open, are made at Tonsley. World-class industrial renewal precinct lauded The district was recently inducted in the Global Network of Innovation Districts and its president Julie Wagner paid a visit to Tonsley earlier this year. Wagner said it was a “phennomenal example” of a thriving innovation district, and one which should be replicated globally. ▲ About 140 businesses operate out of the MAB and are carefully curated according to a suitability matrix. Perry says the key learnings from the huge undertaking had been to form the vision and the narrative, bring everyone together and communicate that vision clearly and early in the piece to foster community engagement and ownership. He says these learnings have been replicated across other Renewal SA projects and the development of precincts elsewhere. “You’ve got to bring them along on the journey,” he says. The renewal project has attracted public and private investment to the tune of $700 million, with a view to reaching $1 billion by the end of the project’s life cycle in 2032. Perry says the workforce at Tonsley is forecast to grow as is the precinct with the addition of the La Loft Hotel, a 4.5-star hotel which opened at the start of 2023; and a brewery which will adaptively reuse the Mitsubishi car plant’s old Boiler House. Renewal SA is working on increasing activity across the site from a 9-to-5 precinct to a 16-hours on, eight-hours off as a live, work and play community. Building a live-work-play community Children are using it on the weekends to learn to ride their bikes and roller skate, and the site is becoming a place of congregation and connection. More than 500 residents have already moved into Tonsley Village, and that is expected to grow to about 1800 when PEET’s mixed-use residential community is complete. ▲ The 61ha site is now home to about 2000 workers, 8500 students and 500 residents, a 4.5-star hotel, and a retail hub with more residents due to move in. Late last year Peet unveiled plans for a wellbeing-focused retail and commercial hub after securing its first tenants and development approval. The $47-million retail component of the precinct won planning approval from the City of Marion and is forecast to open mid-2024 with an anchor grocery store and other retail spaces. The precinct will also include a variety of A-grade commercial office accommodation at the heart of the Tonsley Innovation District, including a major commitment from Junction and Women's Housing Ltd (Junction). Peet managing director Brendan Gore says this new precinct “is a gamechanger for the community”. “Access to amenity like this is key to building self-contained communities and improving the quality of life which has been a goal of Tonsley Village,” Gore says. “For commercial users, it offers a world class building focussed on health and wellbeing at the heart of the Tonsley Innovation District. The new facilities are another step forward and is part of our long-term commitment to supporting the continued growth and success of the Tonsley Innovation District.” ▲ The Mitsubishi Assembly Building during peak operations. Image: Tonsley Park Redevelopment—Cultural History Report Minister for Housing and Urban Development Nick Champion said the merger of innovation and entertainment would spearhead a new-look Tonsley. “Tonsley Innovation District was conceived a decade ago as a major jobs creator—a sustainable economic base for future industries to replace the jobs lost when the Mitsubishi plant closed,” Champion said. “Ten years on, we have a flourishing workforce onsite, some 8500 students being educated within precinct and a growing number of residents who now call Tonsley home. “By allocating space for a major investment in lifestyle amenities we are building on the vibrancy already created within the district and unlocking new employment opportunities for hundreds of South Australians.” Renewal SA plans to complete its capital works program in early 2024, including the completion of a ring road around the MAB. The last allotments of land outside of the MAB are earmarked for sale in 2028. A 10-megawatt battery is due to be installed in the district, boosting Tonsley’s renewable energy uptake, in addition to the 13,000 solar panels lining the MAB roof. The district is also trialling autonomous buses. The South Australian government is currently working on the Innovation District Framework, which will foster stronger connections with other South Australian precincts including Lot Fourteen, and the Adelaide BioMed City. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Innovation at Heart of ‘Global Benchmark’ Tonsley Precinct

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