Commercial & General wins bid to develop former Le Cornu site
After 30 years of delays, something will finally be built at North Adelaide’s old Le Cornu site. But there’s already controversy over the choice of developer.
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The former Le Cornu site in North Adelaide that has been dogged by squabbles for more than 30 years will finally be built upon – but already the choice of developer is proving controversial.
The Advertiser can exclusively reveal that Adelaide-based Commercial & General has been chosen by the Adelaide City Council to breathe new life into the empty land at 88 O’Connell St.
C & G would not comment on its plans for the 7500 sqm site which was bought by the City of Adelaide for $34 million in December 2017, with council associate director of property, Tom McCready, equally reticent to shed light on the future of the former home of furniture retailer Le Cornu.
But Chasecrown director Louis Kanellos, one of the unsuccessful short-listed bidders, said the location was difficult to develop.
“If you get the wrong outcome there it will be catastrophic,” he said.
“Retailers there have been looking for something to happen there for a generation. Did they pick the right developer – that will be debated.
“We’re disappointed we didn’t win it – we thought we had the best scheme, we thought we had the best consortium – but we don’t hold any grudges.”
Mr Kanellos said his bid was anchored by South Australian icon Thomas Foods, with four buildings ranging in height from three storeys to 15 storeys.
“They were going to launch a Thomas Foods exclusive store, showcasing the best of SA produce and that was a key aspect to drawing in other retailers. It had as a main attraction a market square and then there were about 150 apartments across the buildings, retail, medical and office, a comprehensive mixed-use solution.
“We believe North Adelaide doesn’t have a true heart, a true landmark to signify the precinct and that was what we planned for the tallest building.
“We based the model on the typical European square, enclosed with some 1800 sqm, opening up the retail precinct in the centre of the site.”
Starfish Developments managing director Damon Nagel, the other unsuccessful bidder, spent more than $250,000 on submitting his bid alone, an outlay likely matched by the other parties.
His plans included construction of two main buildings rising up to 14 storeys and comprising a mix of apartments and hotel.
“We had a hotel – 164 rooms, a large public square, two restaurants, a day spa and 180 apartments, retail and 15 townhouses,” he said.
“It was a fully mixed-use and integrated development with an amazing roof garden across 2000sq m.
“It would have been like nothing else in Adelaide, it would have been in the top three developments in Australia.”
Despite the disappointment, Mr Nagel, who will turn his attention to building a 100-room, 17-storey hotel on the corner of Wright St and Wright Court as well as converting a warehouse on Angas St into his new headquarters, is upbeat still.
“The great thing about Adelaide is there’s no lack of development sites here.”
Furniture retailer Le Cornu had owned the North Adelaide site for 134 years before it was sold in 1989.
The last of many proposed developments to fall through was in 2014 when property tycoon Con Makris planned to build a luxury apartment, retail and hotel complex worth more than $200 million.