A former SA Health building has been demolished to make way for a signature development earmarked for North Terrace.

Delta Group has completed the demolition of the former Royal Adelaide Hospital Chest Clinic building at 275 North Terrace, advancing work to make way for the proposed high-rise project, which could include two towers, just six months after the state government led redevelopment was announced.

Emily Gibson, Renewal SA’s Director of Partnerships and New Projects, said the accelerated program of works aimed to fast-track residential accommodation delivery in the CBD and progress the redevelopment of the city’s East End.

“The site’s central location and frontage to Adelaide’s main boulevard makes the site an excellent location for many possible types of high-rise accommodation,” Ms Gibson said.

“The demand for city housing and accommodation continues to grow, so we have been working diligently to prepare the site for a development partner to build on as quickly as possible.”

Elements of the dismantled structure are required to be recycled and reused, as part of the demolition project’s sustainability and material management plan.

“Delta Group committed to recycling 100% of the concrete, masonry, asphalt and steel from the demolition, saving hundreds of tonnes of reusable material from landfill,” Ms Gibson added.

Renewal SA bought the former health building in early 2023 after the clinic relocated to be closer to the Royal Adelaide Hospital on the western edge of the city.

Renewal SA also purchased the adjoining Budget Car Rental building at 274 North Terrace under a leaseback arrangement until the end of 2025, to create a rare 2800m², triple-frontage development parcel.

A single-stage Expression of Interest process closed earlier this year through sales agents JLL Australia, seeking a development partner to submit proposals for the site.

Ms Gibson said Renewal SA received strong interest from a variety of parties for the site, and negotiations were underway.

“We were pleased to receive a number of highly compelling submissions from developers interested in making their mark on North Terrace, and we hope to be able to announce our decision in the next couple of months,” Ms Gibson said.

It is anticipated that the developer will be keen to start works on site quickly to prepare it for development.

Early indications suggest the project could generate more than $250 million in construction activity and up to $450 million in market value.