More than $2 billion worth of development projects will be unlocked in South Australia as the state government aims to attract major investment and development partners, boost the state’s economy and combat the housing crisis.
Renewal SA, the state government’s property development agency, is set to release five significant projects to the property development sector by the end of the year with the potential to create upwards of 3,000 dwellings.
They are:
• 274-275 North Terrace ($450 million)
• Tapangka on Franklin ($500 million)
• Thebarton ($1 billion)
• Bowden ($110 million)
• Kloeden Reserve, Whyalla ($30 million).
Chief Executive Chris Menz said there was a once-in-a-generation pipeline of state building projects well into 2025 and developers needed to seize the moment on the back of a strong local economy and authentic government support.
“South Australia is primed and ready for forward thinking developers who are able to get on board now
and take advantage of the unparalleled opportunities available in this state,” Mr Menz said.
“The message from us is that the state is open for business, brimming with potential, ready for those who dare to innovate and now is the time to break new ground and make your mark in a thriving market, a market we expect to continue to grow for years to come.”
Mr Menz said it was vital for developers and investors - locally, nationally and internationally - to have transparency around the pipeline of projects, which stretch across all asset classes.
There also needs to be confidence in a process with state government support in the planning of capital allocation in South Australia, he said.
“The five projects set to be released before the end of 2024 are the tip of the iceberg,” Mr Menz said.
“We have a strong pipeline identified across all asset classes listed online and understand that providing the market with foresight and transparency as to what is coming is critical to getting the best outcomes for our projects.”
274-275 North Terrace
One of the key city-shaping projects - 274-275 North Terrace – has been launched to the market for sale via an Expression of Interest.
Situated directly across from the Lot Fourteen Innovation District, Renewal SA has secured the two adjoining sites and is pitching the combined package as a rare chance to help redefine the skyline of one of Adelaide’s key boulevards, while also contributing to the life, culture and economic vitality of the city’s East End.
Renewal SA will demolish the existing low-rise building at 275 North Terrace and has purchased the neighbouring property, owned by Budget Car Rentals, at 274 North Terrace. This creates a highly flexible, prominent corner development site, which could incorporate more than one tower. Combined, these sites offer a rare 2800m2 triple-street frontage site and the potential for uninterrupted views of the Adelaide Hills and Park Lands.
Mr Menz described the North Terrace opportunity as a compelling proposition for a range of potential uses, from market apartments to build-to-rent apartments, to hotel accommodation, to purpose-built student accommodation. He said the agency would strongly support an outcome where these kinds of uses were delivered in combination, however Mr Menz also emphasised that the project should be driven by market demand.
“We believe the private sector is best positioned to deliver a timely and high-quality development
outcome for the site,” Mr Menz said.
“We will provide some high-level guardrails but are really looking for someone who can articulate a strong and compelling vision for the site consistent with the high value location. We are seeking a group or leader 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.
“Opportunities like this do not come along very often.”
Tapangka on Franklin
Located in the CBD’s West End at the former Adelaide Bus Station site at 111-129 Franklin Street, immediately adjacent to the famed Adelaide Central Market and Chinatown precinct, Renewal SA has a bold vision for a dynamic, mixed-use precinct.
Renewal SA has completed due diligence on the site and engaged Woods Bagot to design a flexible initial master plan for the project.
One or more private sector partners are now being sought to deliver a minimum of 392 apartments, which could incorporate both market housing and build-to-rent across a consolidated 6,850m2 site.
A vision for a 200-plus key hotel and complementary commercial and retail spaces, centred around a signature building and integrated streetscapes, aims to establish Tapangka (Tup-un-gar), which means ‘on a path’ in the Aboriginal Kaurna language of South Australia, as an activated mixed-use precinct for residents, workers, and visitors.
Renewal SA has begun a market sounding and Registration of Interest process for Tapangka. It will act as the master developer for Tapangka, co-ordinating and partnering with one or more selected partners to deliver the project’s vision.
Thebarton
Another key project is the redevelopment of the former West End Brewery site in Thebarton.
With a project value of more than $1 billion, the Thebarton project aims to create a world-class, vibrant, climate-resilient, mixed-use community on 8.4 hectares of land. It will encompass a minimum of 1,000 homes, and mixed uses that include retail, commercial and hospitality.
The Thebarton site is currently finalising the master planning stage, which following thorough community and stakeholder engagement, and together with feedback from the private development sector will determine the most appropriate development outcomes and the configuration of the site.
Renewal SA is expected to begin market sounding to gauge interest from the property and investment sector in participating in the project before the end of the year.
Bowden
The award-winning Bowden project on the north-west fringe of the Adelaide CBD has set the benchmark for inner-city urban renewal across South Australia’s capital city since its inception in 2008.
Now two of its last remaining ‘development ready’ parcels of prime land are being offered for sale. These sites are in Bowden’s vibrant, established community, with immediate access to Bowden Park, Plant 3 and Plant 4 amenities, with unobstructed views of the nearby Adelaide Park Lands.
Expressions of Interest are invited for lots 43 and 2002, located just 2.5km from the CBD. These lots offer flexible, mixed-use development opportunities, including residential apartments and retail and commercial options.
The sites allow development up to 12 levels and provide quick and direct connections to the CBD via tram, train and the Adelaide Park Lands greenway and connected pathways.
The ‘development ready’ parcels have been de-risked by Renewal SA, with all site infrastructure and environmental audit due diligence completed.
This will be one of the last opportunities to be part of the Bowden community and to influence its form and future by investing.
Kloeden Reserve, Whyalla
An Expression of Interest was also launched last month to develop two major pieces of land on Kloeden Reserve, Whyalla, which could unlock to 70 new homes to support the growing regional workforce and community.
At least 10 houses on this site will need to be built immediately. These dwellings will be leased back to the government for a guaranteed minimum period of 10 years to house essential government workers, such as health workers, teachers and police.
Mr Menz said with all these projects coming online, the timing was perfect for developers and partners to either expand their interests in South Australia or look to gain a foothold in the market for the first time.
South Australia has a growing economy underpinned by transformational investments in defence, energy, health and infrastructure, he said.
“The opportunities are significant, as is the timing,” Mr Menz said.
“Whether launching their first project or expanding on an existing portfolio, the time is right to capitalise on our strong economy, tap into government-backed projects and benefit from our strategic land releases.
“We are inviting developers to not only participate in these opportunities, but to work with us to build a future that contributes to the vibrant and dynamic landscape of South Australia.
Mr Menz said the co-ordinated release, which was a significant investment strategy to drive investment in South Australia, also aligned with the state’s A Better Housing Future plan and Housing Roadmap, would help accelerate the delivery of new homes.
For find out more about the opportunities to invest in and develop South Australia, and access more information on individual projects, visit renewalsa.sa.gov.au
