In 2021, Renewal SA has continued to focus on driving long term economic growth in South Australia
As we near the end of another busy year, the team at Renewal SA have been reflecting on the significant changes in the property and development sectors, and indeed in our local economy and communities.
Throughout this period, Renewal SA has seen the unique opportunity to participate in driving long term economic growth in South Australia through property development and urban renewal projects of scale.
We are able to demonstrate this through our close working relationships with our partners across the public and private sectors on a range of significant existing and new projects and initiatives.
In the last 12 or so months, at least eight significant projects have been either put to market or secured, driving around $2 billion of forward economic activity through private and public capital.
Following the announcement of Villawood Properties as the successful development partner to deliver 1500 new homes in Oakden, we were able to quickly confirm the transformation of The Royal Hotel site in Kent Town which is being enabled through an innovative partnership between the state government and Flagship Group.
Renewal SA also recently announced plans for the redevelopment of the former Kaufland site at Prospect. An EOI process in early 2022 will provide opportunities for small to mid-scale builders and developers to be involved in this project that will deliver a minimum of 55% affordable housing and much needed development on a derelict site, in the inner metro area and adjacent to a train station.
In addition, we will shortly be confirming the preferred developer and ambitious vision for the Forestville site as the first step towards renewal of the south west corner of the city’s edge.
We are currently evaluating responses from shortlisted proponents following the closure of Stage 2 of the tender process for the former Gasworks site at Bowden, and we have been busy supporting a number of government agencies and departments on a range of exciting opportunities that will drive growth in key sectors for our State. Additionally, EOIs have now closed for a prime development opportunity of 60 hectares for a new community at Aldinga. We will quickly move to Stage 2 sale process in early 2022.
The sector is busier than ever and despite many challenges, demand for investment in property in South Australia continues to increase.
I am delighted with the results achieved together with our partners, as we deliver on these important projects, all of which are delivering a better future for South Australians.
Kent Town – A South Australian first
The future development of the Royal Hotel site in Kent Town was identified through Renewal SA’s Affordable Housing Expression of Interest launched last year, which sought to identify specific opportunities for innovative affordable housing solutions within metropolitan Adelaide.
The Royal at Kent Town project will incorporate construction of two buildings—one with 102 Build-to-Rent apartments and the other with 90 Build-to-Sell apartments – through a public/private partnership with Flagship Group.
At least 21% of all apartments will be affordable across the Community Housing Provider-owned rental stock and affordable market sales.
Additionally, the Build-to-Rent apartments are a South Australian first, offering investment-class, long-term premium rental options to the open market and featuring a high level of internal amenity and services for working professionals—such as car sharing, electric vehicle charging and bike storage facilities. The apartments will achieve a minimum 7.5-star energy rating and will deliver 100% renewable energy to tenants with high quality shared amenity and green space.
The $105 million project will support 577 construction jobs and will also involve the restoration of the state heritage-listed Royal Hotel.
Prospect– leading in affordable housing
The 2.36-hectare former Kaufland site on Churchill Road offers an important opportunity for small to mid-scale builders and developers.
We are currently finalising the masterplan for the site, where a minimum of 55% of the 180 residences will be offered as affordable housing – that’s almost four times the statutory 15% obligation required under the Planning and Development Code.
A shared equity home loan model will be utilised to enable townhouses to qualify as affordable housing, with prices for these homes fixed at $422,050 or less. This is a critical move to increase the diversity of housing supply available within the inner metropolitan area; ensuring supply of affordable housing is not just focussed on apartment housing.
Private developers and builders will be selected through a competitive tender process commencing in early 2022, with construction expected to begin later that year at a time when HIA are forecasting a fall in building work begins.
Bowden – Former Gasworks site, city changing opportunity
We are currently evaluating responses from shortlisted proponents following the closure of the Request for Proposal process for the former Gasworks site at Bowden.
This landmark site has attracted submissions of outstanding quality, and it is a privilege to be participating in a decision that will help shape the landscape of our city.
We will continue to provide updates as we work towards our long-term vision to transform this site into a vibrant, healthy and active precinct.
Economic growth projects
Australian Space Park: Last week’s announcement that South Australia will be the site for the nation’s first dedicated space manufacturing hub was a great outcome for the State and for all those who are helping make it happen.
Renewal SA has been supporting the Department of Trade and Investment to drive the project delivery and working with the future tenants of the Australian Space Park.
Four companies – Fleet Space Technologies, Q-CTRL, ATSpace and Alauda Aeronautics – are partnering with the South Australian Government in this purpose-built facility with Adelaide Airport identified as the ideal location.
Highgate Park: Renewal SA is leading the sale of the former Julia Farr Centre – now known as Highgate Park – on behalf of the Trust which owns the site, with proceeds to be used to benefit South Australians living with a disability.
We are currently undertaking a market sounding process with joint agents, JLL and Savills, to identify the level of interest from potential buyers in the nine-storey building, which was built in the 1970s, and the surrounding 2.85ha site in Fisher Street, Fullarton.
The sale of Highgate Park will proceed via a formal EOI process to commence in early 2022.
Entrepreneur and Innovation Centre (EIC): It was announced recently that the EIC at Lot Fourteen has received approval for its variation of planning design. Quintessential Equity has worked with COX Architecture on the new design, with the building set to encompass a series of twisting and interconnected floorplates, a faceted façade, public atrium and landscaped roof terrace.
Delivery of the flagship building in the Lot Fourteen precinct, was awarded to property private equity company Quintessential Equity earlier this year. Construction is scheduled to start in mid-2022 and tenants are expected to move in from 2024.
None of what we do would be achieved without the confidence and cooperation of private sector developers and investors who are continually seeking ways to drive the South Australian economic and community landscape by innovating, taking risks and setting new benchmarks across all categories of projects and asset classes.
Thank you for your support throughout 2021 and continued interest in the projects Renewal SA is delivering for South Australia. We look forward to building on this great trust and confidence as we work together in 2022.
I wish you all a safe and restful Christmas and New Year season.
Ngaityalya! Thank you!
Renewal SA Chief Executive
Stories you may have missed in 2021:
- Festival Plaza to be open to public for mad March 2022
- Bowden booms with two new townhouse development and a growing business neighbourhood
- Sustainability and affordability reach new heights at Bowden
- Iconic Tonsley Boiler House re-offered for sale to hospitality sector
- Seaton rejuvenation to deliver new housing and new reserve