Adelaide Central Market Arcade redevelopment approved by State Commission Assessment Panel

A $400m project to redevelop the Adelaide Central Market Arcade has been approved, with construction expected to start this year.

A joint venture between Adelaide City Council and a property company to spend $400m redeveloping the Adelaide Central Market Arcade has been approved.

In a South Australian-first, the council will recover its $28m contribution towards the project by selling the “air rights” above the arcade, which will be demolished.

Under the deal, land titles will be handed to Melbourne-based developer ICD Property, which will build three towers on the site presently occupied by a supermarket and the arcade.

Council property director Tom McCready said it was a “win-win for ratepayers and a win-win for council”.

“We are not selling our land, we will retain ownership of the land,” he said.

“With the air rights opportunity, council sought interest from the development community to enhance unused air space above the current Central Market Adelaide.

“The developer has paid for those rights to achieve a more enhanced and expanded offer for the city above and beyond the existing retail offer.”

Architects’ render of the redevelopment of the Adelaide Central Market Arcade. Picture: Woods Bagot

The State Commission Assessment Panel (SCAP) on Wednesday approved the development, which involves ground floor retail and food outlets and three towers with apartments and offices.

The neighbouring Central Market will remain open throughout construction, which is expected to take almost four years while temporary parking will be provided on the site of the former Franklin Street bus depot.

Adelaide Lord Mayor Sandy Verschoor said the project was a “once in a lifetime opportunity to grow and secure the future of one of Adelaide’s most iconic precincts”.

“This investment provides a unique opportunity to build on what people already love about the market district,” she said.

Melbourne-based ICD Property managing director Matthew Khoo said the company was “thrilled” to have received SCAP approval for what would become Market Square.

“This is a massive milestone for the project, and an honour for us to be working on such an iconic city-shaping project,” he said.

The central atrium in the redevelopment, which will become known as Market Square. Picture: Woods Bagot

Mr Khoo said a key feature would be a 15,000sq m office building with seven levels available for leasing, while two other towers would have apartments.

Food outlets, shops and other retail space would take up the first two levels with a central atrium connecting Gouger Street to Grote Street and the Sir Samuel Way Building.

Adelaide Central Market Authority chairman Theo Maras urged the public to continue supporting the market throughout the construction period, which is expected to generate around 1000 jobs.

Mr Maras said the authority “wholly supports” the redevelopment.

“Our traders are committed to serving the community and will remain open for business throughout the project,” he said.

Mr Khoo said his company was “acutely aware” of the potential impact of the project on traders and market customers.

His project team included world-renowned Adelaide architects Wood Bagot. A builder has yet to be chosen.

ICD Property will buy the “air rights” above the existing Adelaide Central Market Arcade in a $28m deal with the Adelaide City Council. Picture: Woods Bagot

“We are working closely with the entire project team and the market authority to ensure this impact is minimal,” he said.

“The Central Market will be open for business during all phases of this development and we will do everything in our power to make this as easy as possible.”

Mr Khoo said this included the installation of hoarding around the construction site to reduce noise and dust while promotion of the market would be increased.

The council was separately working with traders in the Central Market Arcade who wanted to be relocated to other sites within the CBD during construction.

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