Lot Fourteen ‘Innovation Centre’ looking for new developer
A new developer is being sought to deliver a redesigned innovation hub at Lot Fourteen, after the state government severed ties with a Melbourne property group.
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A new developer is being sought to deliver a redesigned innovation precinct at Lot Fourteen, after the state government severed ties with Melbourne property group Quintessential on the project.
The former Liberal government selected Quintessential to deliver a $400m ‘Entrepreneur and Innovation Centre’ (EIC) at the precinct in March 2021 following a competitive tender process, but the agreement expired earlier this year after three years of delays and limited success in securing tenants.
As part of a new masterplan unveiled last week, the original vision of a 16-level, 41,000sq m EIC has been replaced with a 17,000sq m ‘Innovation Centre’.
It has already secured a 77 per cent pre-commitment from tenants including BAE Systems Australia, and state and federal government projects including a $60m Australian Defence Technologies Academy, $20m Space Assembly Integration and Testing Facility, and a $20m Innovation Hub previously earmarked for the EIC as part of a ‘City Deal’ funded by the federal government.
Quintessential had previously secured Commonwealth Bank as a cornerstone tenant in the EIC proposal, but the bank is not part of the latest plans.
A Lot Fourteen spokeswoman confirmed the agreement with Quintessential expired in May, and “both parties agreed not to pursue an extension”.
JLL has been engaged by the state government to find a new development partner to deliver the redesigned project.
JLL head of capital markets SA Ben Parkinson said the Innovation Centre would have a strong focus on defence, space, cyber and critical technologies.
He said the pre-commitments had been struck on 10-year lease terms, and the offering was likely to generate interest from domestic and foreign investors.
“The Innovation Centre represents a rare opportunity to deliver a project that will advance the continued transformation of Adelaide’s economy, technology and capability,” Mr Parkinson said.
“It’s central to the evolution of Lot Fourteen as a district of national and global significance, particularly in relation to the state’s defence landscape.
“The project will be further supported by the upcoming merger of the University of South Australia and University of Adelaide into Adelaide University, which will launch in 2026 and shape an expanded focus on STEM and on areas such as defence, cyber and engineering.
“The combination and concentration of expertise and pathways from study to meaningful employment will help to cement Adelaide as a centre for talent attraction and retention.”
The Innovation Centre development is targeting completion by the end of 2027, four years after the original EIC proposal was expected to be completed when the former Liberal government unveiled the plans in 2020.
It will be the first new development built in the 7ha Lot Fourteen innovation district.
The developer chosen to deliver the project will secure a 100 per cent leasehold interest in the land via a 99-year ground lease, as well as the opportunity for exclusive rights for a pipeline of future development slated for the precinct over the next decade.
Expressions of interest close at 3pm on November 26.
Quintessential, which is currently investing around $60m on upgrades to two Adelaide office towers on Pirie and King William streets, declined to comment.
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