Thousands of government workers to move to new $450m King William Street building, under Charter Hall, Services Australia deal

Thousands of government workers will relocate to a new $450m CBD tower, which will become home to Adelaide’s biggest office building.

60 King William Street will become home to 3500 office and retail workers. Picture: Supplied by Charter Hall

Services Australia has confirmed it will relocate more than 2200 staff to a new $450m office tower in the Adelaide CBD, paving the way for construction of the city’s biggest office building.

The move will kickstart work on the city’s biggest commercial real estate project at the Southern Cross Arcade site on King William Street, creating 1500 jobs during construction, including 150 apprentices.

The 14-storey building will offer around 40,000sq m of office space, making it Adelaide’s biggest office building by area.

It will also include a 3600sq m ground floor retail precinct featuring cafes, restaurants, a supermarket, barista bar and allied health and wellness facilities.

The precinct – known as 60 King William Street or 60KW – will eventually become home to 3500 office and retail workers, as revealed in The Australian in October.

Artist’s impression of the interior of 60KW. Picture: Supplied by Charter Hall

Developer Charter Hall confirmed construction company Built had started early works at the site ahead of demolition in the coming months and completion in mid-2023.

Southern Cross Arcade food court tenants have already begun vacating the site.

Charter Hall managing director David Harrison said the project was the company’s biggest single investment in South Australia.

“The project will increase Charter Hall’s total investment in South Australia to more than $2 billion,” he said.

“We were very proud to officially open the $260m GPO Exchange development in Adelaide’s CBD in October last year, and we maintain a positive outlook for the state.

“Building on this success, and in a major vote of confidence for the future of South Australia, 60 King William Street will be our largest commercial investment in Adelaide to date.”

Services Australia, which oversees public services including Centrelink and Medicare, will consolidate five of its non-customer-facing offices in the new premises after entering a 10-year lease for 28,500sq m across 10 floors.

Additional tenants are being sought for the top three floors in the building.

Artist’s impression of the interior of 60KW. Picture: Supplied by Charter Hall

The move is not expected to impact face-to-face customer services or reduce the agency’s workforce.

South Australian Senator Simon Birmingham said the precommitment by Services Australia would trigger much needed economic activity in the CBD.

“Charter Hall’s development is going to be jobs bonanza for South Australia – it won’t only create around 1500 jobs during the construction phase but will also support thousands of ongoing jobs in the CBD after its completion,” he said.

“We shouldn’t discount the positive flow-on effects this development will have for businesses in the Adelaide CBD at a time when they need it most.”

Services Australia’s move to the Charter Hall development is seen as a major blow to Walker Corporation’s $600m Festival Square development, which was also vying for the agency’s precommitment.

Late last year Charter Hall redrew its design for the project after plans to demolish a heritage facade were met with fierce opposition from groups wanting it to be retained.

The Sands and McDougall building on King William St. Picture: Colin James

The heritage Sands and McDougall facade will be saved, as the surrounding Southern Cross Arcade is demolished. Picture: Colin James

The 1930s art deco facade of the Sands & McDougall building will be retained and restored as part of the final design.

The project will offer the latest in state-of-the-art workplace facilities and technologies, including a sky lobby, facial recognition, touchless access and bathroom amenities and a wellness centre.

Tenants will have exclusive access to a rooftop terrace and the city’s “largest hotel-style end of trip facilities”, including private showers, grooming stations and 350 bike parks.

The building has been designed by Cox Architecture to achieve industry leading environmental ratings including 6 Star Green Star and 5 Star NABERS Energy ratings, and Gold Well certification.

Premier Steven Marshall said Services Australia’s precommitment underlined confidence in the state’s economy.

“The transformative 60 King William development makes a clear statement that Adelaide and South Australia is open for business,” he said.

“This project will leave a lasting legacy on our CBD footprint and create a huge number of jobs at a time when employment and private investment is greatly needed.”