Pelligra Group brings top-line tenants to former Holden HQ

When Ross Pelligra’s grandfather — a Sicilian property developer — made the trek from Italy to Melbourne in the early 1960s, he intended to size things up and stay for no more than six months.

The Lionsgate business park. Picture supplied by Pelligra.

When Ross Pelligra’s grandfather, a Sicilian property developer, made the trek from Italy to Melbourne in the early 1960s he intended to size things up and stay for no more than six months.

Such was the appeal of Australia that Rosario Snr, 86-years-old next month, is still in Victoria, today. He has done well, the patriarch of a multimillion-dollar property and construction empire big on the eastern seaboard and now making waves in South Australia.

Fifteen months ago the Pelligra Group, now chaired by his grandson Ross, splashed out $55 million for the Holden site in Elizabeth, an outlay that will rise many times as the former car manufacturing plant is repositioned.

Two years ago, no-one in SA was interested in the sprawling, 123ha hardstand site, with international enthusiasm absent too.

But 40-year-old Ross had seen an opportunity not immediately shared by his board. The advice from his grandfather was unequivocal.

“Grandad saw the potential, he said ‘if the board isn’t going to support you, let’s just you and me buy it’,” said Mr Pelligra.

The board though saw sense. The timing has been immaculate, the incoming wider defence and space agency uplift has boosted SA in general but in this niche of northern Adelaide runs are already piling on the board.

Seven of nine available tenancies — about 128,000sq m — have already been leased or reserved with all existing buildings expected to be filled by the end of this year. Already the client list is expansive.

“We have commitments from Genis Steel, Australian Cranes, SA Power Networks, Sonnen, GM, Levett Engineering,” said Mr Pelligra. “There are several other significant occupiers currently seeking space for the site and are in discussions with (leasing agent) CBRE.”

Sonnen Batteries expects to grow its SA workforce to around 430 as it ramps up production as a home battery supplier for the $100 million SA home battery scheme

“SA will be the base for Sonnen to head into Asia,” said managing-director Nathan Dunn.

The Shell buyout last month will make little difference he says albeit providing a greater liquidity.

“It’s business as usual, we are now a very well leveraged organisation.”

Ross Pelligra, chairman of the Pelligra Group when he bought the Holden factory in Elizabeth in December 2017. Picture: Matt Turner

Delivering tenant outcomes is imperative says Ross Pelligra, who looks after 900 clients nationally, from retail to government

“We have taken Melbourne tenants and moved them to other states, Genis Steel is coming from Melbourne. We have a 20,000sq m building getting ready to set up over the next few months.

“We are not looking to lock in tenants for 10 to 20 years, we will put them in for the short term. The goal of Pelligra is to deliver tenant requirements quickly,” he said.

The Lionsgate masterplan will be centred around client requirements, Pelligra can deliver a 25,000sq m build within four months Mr Pelligra said with the site not beholden to past structures.

“Over the next 12 months we will fill buildings, the masterplan will be around client requirements. There will be high, vertical buildings, older buildings will come down. We are not just parking investment here, we are working for our tenants. We are setting up a team in SA to deliver buildings quickly.

“We are not as fast as Melbourne (yet) but we have to deliver the outcome. The cost of our product has to be affordable for the real manufacturers.”

He is not one to make idle boasts, a stinging 24/7 work ethic underpinning his success.

“I will get on the phone to make sure things are delivered the next morning. We will work around the client if we need to,” he said.

“It’s so important to deliver a promise. If you can’t do that, you are like everyone else.”

Lionsgate general manager Paschal Somers addresses a Brand SA tour to Lionsgate last week in what will be the new home of Genis Steel. Picture supplied by Brand SA.

There is indeed a dash of magic at Holden right now also. Last week, a Brand SA tour passed a Lionsgate building where actor Daniel Radcliffe — Harry Potter himself — was filming a prison scene for the Escape to Pretoria film.

Paschal Somers, Lionsgate general manager and previously a lifer at Holden, offers a perspective on the wider industrial changes.

“It was a massive ethnic pot when I came in 1994,” he said. “It was fun to be there, hard work, it was dirty.

”It’s been an absolute transformation, 2004 was the pinnacle for this site, there were three shifts, 820 cars were going out of the door every day. There was a massive export market at the time. There were 11000 people there in the late ‘70s, 4000 in 1994 to 6000 in 2004.”

Efficiencies in automation changed things hence the obsolence of the car making industry in Elizabeth.

“There is a positive feeling and vibe now, people are excited to be here.”

City of Playford Mayor Glenn Docherty is a big fan of Lionsgate.

“Had it not been for Pelligra, we would have had locks on the gates. Holden closing was a blow to the community, people thought they could rely on Holden forever. But now there is lots going on, defence announcements will be made on this site over the next couple of months,” he said.

“The SA economy is changing, Pelligra is helping to energise it. It takes a long time to build confidence in SA. I want to thank Ross for his investment.”

Costings are low, says CBRE’s David Reid, the man charged with selling Lionsgate to tenants.

“It’s about $65sq m here to update, if you were to build it new, it would be $150sq m. We have moved away from manufacturing but now it’s starting to come back.”