South Australia Government calls tenders for $900 million redevelopment of Adelaide Festival Plaza by developer Lang Walker, SkyCity expansion
8 minutes ago
Political Reporter Sheradyn HolderheadThe Advertiser
TENDERS have been be called for the redevelopment of the Adelaide Festival Plaza, with the signing of two formal agreements, the State Government has announced.
Premier Jay Weatherill said the agreements would allow the 25,000sqm development to proceed, including two key private projects worth more than $900 million.
These included a $430 million development by Walker Corporation which involved an office building, retail area, car park upgrade and Festival Plaza upgrade and a $300 million expansion of the Adelaide Casino.
“Together the projects are worth more than $900 million and expected to support about 2500 jobs during construction and at least 400 ongoing jobs,” said Mr Weatherill.
“The Festival Plaza will become a landmark site in the heart of Adelaide’s Riverbank Precinct, bringing together all of the precinct’s icon sites such as the Adelaide Oval, the Festival Centre, the Convention Centre and the Riverbank Bridge.
An artist’s impression of the redeveloped Festival Plaza.
“The upgraded Festival Plaza will become a unique world-class hub for the arts, culture, tourism and entertainment.
“It will be defined by a number of key places including the new square, the northern promenade, integration with King William Street, the Art Space Plaza, a reimagining of Station Road and a new entry to Adelaide Railway Station.
“Once complete, it will add to Adelaide’s reputation as one of the world’s most liveable cities, building upon our progressive reforms that rejuvenated our city with interesting laneways and unique small bars.”
As revealed by The Advertiser earlier this week, the deal was given State Cabinet approval on Monday.
The approval follows intense speculation that the deal was on the brink of collapse, despite an Advertiser report in March that development applications had been given a green light.
Mr Weatherill unveiled plans for the $610 million Festival Plaza area redevelopment in March last year, saying Walker Corp would invest $430 million and taxpayers $180 million.
The long-awaited development involves the Station Rd office tower, opposite Adelaide Casino and behind Old Parliament House, and a two-storey complex north of Parliament House including cafes, restaurants and luxury shops.
The tired Hajek Plaza, now a concreted open space dotted with multicoloured statues, will be overhauled and marketed as a thriving day-night city destination featuring concerts, exhibitions and pop-up food and drink stands.
The dilapidated underground carpark will be the starting point for the redevelopment.
In January, The Advertiser revealed the Government’s plan for the public plaza featuring vine-covered pergolas, a Jacaranda-lined boulevard and a pedestrian tunnel featuring shops and cafes, developed by ARM Architecture in consultation with Hassel.
Casino operator SkyCity this month revealed a $243 million capital raising effort to help fund its $300 million Adelaide expansion, which includes an 80-room luxury hotel, restaurants and premium gaming areas.
Some sources close to the project accuse SkyCity of delaying the Festival Plaza project’s go-ahead, but casino sources have repeatedly insisted they need the car park spaces to support the expansion.
Construction work affecting the casino and Adelaide Railway Station includes lowering Festival Drv, requiring the temporary closure of the railway station’s northern and forcing the diversion of already-limited footbridge traffic through an alleyway next to the Intercontinental Hotel.
An earlier artist’s impression of the proposed Festival plaza redevelopment.
Mr Walker, one of Australia’s biggest developers, said the project had “huge potential”.
“It is the culmination of four years’ hard work, consisting of international research, evolving project concepts and plans, and the negotiation of complex agreements between all involved parties,” he said.
“On the cusp of growth, this development will become a major drawcard for Adelaide and attract major national and international businesses.
“We have a strong track record of creating projects where people can work and socialise, whilst delivering an excellent outcome for both the public and corporate tenants.”
Urban Planning Minister Stephen Mullighan said the agreements had involved a complex set of negotiations between Walker Corporation, SkyCity and other stakeholders, such as the Festival Centre and the InterContinental Hotel.
“These works will transform this long-neglected space into Adelaide’s pre-eminent meeting space, creating a public realm which will be a focal point for our increasingly vibrant city,” he said.
“Once completed the Festival Plaza will be a place for all South Australians to meet for festivals and events, before and after sporting events at Adelaide Oval, or even just a place to recreate.”
SkyCity chief executive John Mortensen said the New Zealand-based company was “delighted” to reach agreement to start the first phase of the rejuvenation of the Riverbank Precinct.
“SkyCity’s Adelaide Casino expansion will bring high net-worth visitors to South Australia, providing a significant boost to the tourism industry,” he said.
Adelaide Festival Centre CEO Douglas Gautier said the redevelopment of Festival Plaza and upgrades to the Festival Centre “will create one of the world’s great arts, culture and entertainment precincts”.
