Renewal SA unlocks prime North Tce land for accommodation tower that could be Adelaide’s tallest

Prime parcels of Adelaide CBD land will be unlocked for a developer to build what could be the state’s tallest tower, aimed at housing hundreds of city workers.

The city’s tallest skyscraper aimed at providing critical CBD housing for city workers would be built on North Terrace under a plan for a new apartment building worth nearly half a billion dollars.

The state government has secured two of Adelaide’s most exclusive parcels of premium real estate at 275 and 274 North Tce, unlocking them for a “city-shaping tower” to be built under “minimal government guidance”.

Combined, the two adjoining sites at the Frome Rd intersection create a “highly flexible”, 2800sq site for one or more towers providing uninterrupted views of North Adelaide, the Adelaide Hills and the parklands.

An artist impression of a tower that could be built on North Tce under a Renewal SA plan for two sites of prime CBD land. Picture: Renewal SA

It would be built opposite the 725-bed, 119m student accommodation tower Yugo and what’s currently the city’s tallest building, the 138m Frome Central, directly across from the Lot Fourteen Innovation Precinct and the newly merged Adelaide University.

Housing could be aimed at workers from both Lot 14 and the uni, Housing Minister Nick Champion said.

Early market indications show construction would generate about $250m for the state’s economy, while the finished project would be worth about $450m in market value, Renewal SA said.

The site could be used for a range of potential uses, including both market-sale or build-to-rent apartments, a hotel or purpose-built student accommodation and affordable housing, and there could be one or two towers.

Accommodation is the focus but Renewal SA said there was the opportunity for ground-floor retail, commercial and hospitality spaces, to take advantage of growing foot traffic in the area.

Renewal SA kicked off expressions of interest from Thursday, inviting offers to purchase the site, with minimal conditions and design requirements.

The state government said it would work with the successful developer to increase the maximum building height, making it possible for it to one day be the site of the city’s tallest tower.

The site at 275 North Tce that will be offered to developers by Renewal SA for what could be Adelaide's tallest building, in a bid to address the critical shortage of housing. Picture: Supplied

The two buildings on the corner of North Tce and Frome Rd will be torn down or developed into an accommodation tower. Picture: Supplied

A spokesperson said the development should create a building with significant architectural merit, “commensurate with the aesthetic of the area”.

The building at 275 North Tce – previously owned and occupied by SA Health – will be demolished, while the Budget Car Rental building at 274 will remain as it is while Budget considers relocation. The building’s fate will be up to the successful purchaser.

Mr Champion said the government would work with the successful developer to increase the maximum building heights, allowing them to create a development with “minimal government guidance”.

“Adelaide can’t afford to have developers sit on vacant sites and the state government is no exception, that’s why we are bringing this to market as soon as possible,” he said.

The two sites on the corner of North Tce and Frome St will be torn down or developed into an accommodation tower. Picture: Supplied

Under the Greater Adelaide Regional Plan, released in September, more than 45,000 new homes will be needed in the city and inner metro by 2051, while Adelaide City Council aims to double the city’s population to 50,000 by 2036.

Labor MP Lucy Hood said that required high-quality, high-density housing “in exciting settings”.

“We can turn a drab, uninspiring corner block on our city’s most famous terrace into a place where people can live, work and play with our cultural institutions, Lot Fourteen, the new Adelaide University and the Botanic Gardens literally on their doorstep,” she said.

Renewal SA chief executive Chris Menz said the site was a rare opportunity providing a strategic corner site and three street frontages.

“We believe the private sector is best positioned to deliver a timely and high-quality development outcome for the site,” he said.

“We will provide some high-level guardrails but are really looking for a development partner who can articulate a strong and compelling vision.”

Property Council of Australia executive director Bruce Djite encouraged the government to continue to unlock sites and divest under-utilised assets to develop land.