One of the most exclusive parcels of premium real estate on Adelaide's main boulevard will be unlocked for a significant new development opportunity, as the Malinauskas Labor Government calls on developers to put their best foot forward for a project set to redefine the city's skyline.
The Malinauskas Labor Government has secured two adjoining sites at 274 and 275 North Terrace on the corner of Frome Road and situated directly across from the Lot Fourteen Innovation Precinct and the new Adelaide University.
The State Government is pitching the combined package as a rare opportunity for the development sector to both shape the city skyline whilst providing critical housing stock for the CBD.
Combined, these sites offer a rare 2800m2 triple-street frontage block and the potential for uninterrupted views of North Adelaide, the Adelaide Hills and Park Lands.
Renewal SA will demolish the building at 275 North Terrace and has settled on the neighbouring property at 274 North Terrace. This creates a highly flexible, prominent corner development site, which could incorporate one or more towers.
Early indications suggest the project could generate more than $250 million in construction activity and approximately $450 million in market value.
From today, Renewal SA will be inviting offers from the market to purchase the site with a commitment to deliver on some minimal conditions and some design requirements.
The State Government will work closely with the successful purchaser to increase the maximum building height, making it possible for this site to one day be the location of the city's tallest tower.
The site could accommodate a range of potential uses, including market apartments build-to-rent apartments, hotel accommodation or purpose-built student accommodation and affordable housing.
Whilst accommodation will be the primary focus, there is also the opportunity for ground floor retail, commercial and hospitality spaces, which could take advantage of the growing foot traffic in the area.
The building at 275 North Terrace was previously owned and occupied by SA Health. Renewal SA purchased the site to enable the health services to relocate closer to the Royal Adelaide Hospital.
Meanwhile, 274 North Terrace will continue to operate as a Budget Car Rentals under a leaseback arrangement to ensure business continuity while they consider relocating their business.
A single-stage Expression of Interest process will be seeking submissions from interested parties from today, 7 November 2024 with the process expected to extend into the new year.
For a concept image of the type of development that could be possible at the site as well as drone vision of the prominent location click here.
As put by Nick Champion
This is the type of opportunity developers will be dreaming of.
We want to see this exclusive corner block transformed into a new city shaping tower that will complement the growing workforce at Lot Fourteen and the new Adelaide University merger.
We will work with the successful developer to increase the maximum building heights, allowing them to drive the vision and create a development with minimal government guidance.
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.
As put by Lucy Hood
If we are to grow the population of our CBD, then we need to grasp opportunities to provide high-quality, high-density housing in exciting settings, that encourage more people to make the move to Adelaide's heart.
This is such an opportunity. We can turn a drab, uninspiring corner block on our city's most famous terrace into a place where people can live, work and play with our cultural institutions, Lot Fourteen, the new Adelaide University and the Botanic Gardens literally on their doorstep.
As put by Chris Menz. Renewal SA Chief Executive
Opportunities like this do not come along very often.
We have worked to secure the strategic corner site to provide three street frontages in a prime location. We believe the private sector is best positioned to deliver a timely and high-quality development outcome 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.
As put by Bruce Djite, Executive Director, Property Council of Australia
This is an exciting development opportunity, and we encourage the government to continue to unlock sites and divest their underutilised assets, so land can be developed for the highest and best use.
Attracting capital, encouraging development and allowing the private market to quickly get on with delivering the homes, jobs and vibrancy the CBD and state needs is the blueprint for addressing the housing crisis, stimulating the economy and further improving liveability, social outcomes, amenity and vibrancy.
Industry welcomes this initiative from government and looks forward to delivering another iconic development on North Terrace.
