Renewal SA has partnered with national property developer Flagship Group to deliver close to 200 apartments next door to the State Heritage-listed Royal Hotel in Kent Town.
The $105 million development will involve the restoration of the Royal Hotel, which opened in 1878 and is located on the historic corner of North Terrace and Dequetteville Terrace, as well as the construction of two mid-rise apartment buildings.
One of these buildings will comprise 102 Build to Rent apartments and the other will comprise 90 Build to Sell apartments, with 21% of the apartments to be offered as affordable housing.
In a South Australian first, the Build to Rent apartments will be a departure from Australia’s traditional development model by offering investment-class, long-term 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 development of this highly desirable city-fringe location, which will transform The Royal Hotel’s existing car park and adjoining land, will not only unlock much need housing and rental opportunities for South Australians but also generate approximately 577 new jobs during the two-year construction period.
Renewal SA’s Chief Executive Chris Menz said that The Royal at Kent Town project was made possible through a successful collaboration between the state government and the private sector and that it would support more South Australians into homeownership while contributing to the State Government’s $550 million 10-year housing strategy.
“The Royal at Kent Town will encourage more young, working professionals to live near the CBD where they can further leverage the great connections and infrastructure available to them,” he said.
“The project will also see the landmark Royal Hotel refurbished—bringing it back to its former glory and adding to the vibrancy of the new Kent Town precinct that will be created as part of this development.”
Flagship Group CEO and Director Mark Jarman said that he and his team were incredibly excited to be planning the rejuvenation of what was a landmark corner in Adelaide and what would soon become a new gateway to Kent Town.
“Our focus on design that enables and encourages the occupants to form their own micro-community is a fundamental and will remain a priority in delivering this new precinct,” Mr Jarman said.
“In addition to high quality green space and shared amenity, the new apartments will also achieve a minimum 7.5-star energy rating and deliver 100% renewable energy to tenants.”
Renewal SA support for the project will enable construction of the two apartment buildings to be undertaken concurrently, with works due to commence no later than mid-2022.
Flagship Group will later determine the future use of the Royal Hotel, with its restoration focusing on a new commercial co-working space and a light food and beverage offering.