Royal Hotel site in Kent Town put on the market by Flagship Property

A Victorian developer has shelved plans to build two apartment towers at the site of a historic former pub on the edge of the CBD.

Artist impression of the apartment development at the Royal Hotel site, 2 North Tce, Kent Town, by Flagship Property Holdings. Picture: Supplied

Plans to build two apartment towers next to the historic Royal Hotel at Kent Town have been shelved, with developers looking to offload the site less than a month after securing planning approval for the project.

Victorian developer Flagship Property Holdings was behind plans to build 192 apartments across two buildings - one scaling 15 storeys immediately adjacent to the former Royal Hotel and another rising 14 storeys further east on North Tce.

The state government’s development agency, Renewal SA, had agreed to underwrite the sale of 35 affordable housing apartments in the development, while the 146-year old pub was to be restored for alternative uses after closing in 2019 following the collapse of previous operator Entertainment Venues Australia.

Artist's impression of Flagship’s approved apartment development at the former Royal Hotel site. Picture: Supplied

However international property firm Savills has now been engaged to sell the 4118sq m site, which comes with the state heritage-listed former pub building and planning approvals for the two towers. Expressions of interest close on July 20.

Savills director Ryan Mills described the site, which is primarily used as a car park, as “one of the most prominent, strategic and significant opportunities in Adelaide’s fringe suburbs”.

“Kent Town is well known as one of Adelaide’s most desirable city fringe suburbs following a period of gentrification after the South Australian state government identified it as a ‘development opportunity’ in 2010 as part of its 30-year plan,” he said.

The former Royal Hotel, which has a state-heritage listing, as it appears now. Picture: Supplied

Flagship’s planned sale of the site follows close to a decade of ownership, with the company paying $7.53m to acquire it in 2014.

The State Commission Assessment Panel signed off on the developer’s latest plans on May 24, eight years after it won its first approval for high rise development at the site.

An earlier version of its current plan was unveiled in December 2021, valued at the time at $105m, and including car sharing, electric vehicle charging and bike storage facilities.

Flagship’s current approvals include car parking spaces for more than 200 vehicles and a communal open space for residents on the third level.

Food and beverage outlets were envisaged for the ground floor of the towers, which were to include 40 apartments classed as affordable housing as well as six specialist disability housing residences.

Mr Mills said the site’s flexible zoning supported a wide range of potential developments including traditional and build-to-rent apartments, student accommodation, offices and hotel.