Adelaide developer Tangcheng is selling two key city sites and leaving others vacant, casting doubt over its $300m investment plan
AN ADELAIDE development company led by a reputed Chinese billionaire appears to have shelved plans to invest $300 million in the CBD.
AN ADELAIDE development company led by a reputed Chinese billionaire appears to have shelved plans to invest $300 million in the central business district.
Chenghui Xu's Tangcheng Group had plans for four key city sites, the largest project being an $120 million mixed use development on Gouger St with an 18-storey apartment tower, 14-storey hotel, two eight-storey apartment blocks, a smaller student housing building and a supermarket.
The plans were approved in April but the 7000sq m property between Claxton and Selby streets is up for sale, along with another Tangcheng site on Pulteney St that was earmarked for a 15-storey student housing block.
An agent for the Gouger St site, Toop & Toop's Peter Fried, said he understood Tangcheng was "directing their interest towards mining interstate".
Mr Fried said he had received "six or seven strong inquiries" but he did not know whether any prospective buyers were interested in building to the development approvals.
In January, the Development Assessment Commission approved a $45 million Tangcheng proposal on Waymouth St, west of Light Square, for another large scale development mixing apartments, hotel rooms and offices.
But the block remains vacant and the neighbouring City Collision Centre was using the site to park clients' cars until the City Council became aware of the informal agreement the crash repair business had with Tangcheng.
The Pulteney St proposal and the one for the fourth site, at the corner of King William and Gilbert streets, became notorious after City councillors condemned plans for student apartments as small as 20.5sq m as "suicide boxes". Plans were revised but the King William St site remains vacant.
The Tangcheng website still says the company has $300 million of investments funds allocated to the city and estimates its projects will create 600 construction jobs.
But it has closed its office and phone calls from the City Messenger went answered.
By email, Tangcheng spokeswoman Connie Yang declined to comment about the company's intentions.
The director of Tangcheng's preferred architect Hames Sharley, David Cooke, did not return calls.
Property Council SA executive director Richard Angove said he did not know the reasons for Tangcheng's sales but he did not believe the city had a problem with developers gaining approvals just to raise land values for sale.
Many were sitting on properties until market conditions were right to build, he said.
Developers have earmarked at least 45 major projects worth more than $2.5 billion since the State Government relaxed planning regulations last year, but it remains to be seen how many go ahead.