Supermarket giant pulls out of $45m shopping hub in Adelaide’s south
PLANS for a new $45m shopping centre in Adelaide’s south will be reconsidered as a supermarket giant withdraws its interest in the retail hub – a new blow for the development that’s already been scaled back.
COLES has pulled out of the proposed $45 million Flagstaff Hill shopping centre complex, forcing the developers to “rejig” their plans.
In the latest hurdle for Adelaide Development Company’s project, the Seventh St centre will not open in 2018 and faces being downsized again after losing its anchor tenant.
It is understood Coles told developers last month they would no longer be part of the complex, which is to be built on 3.4ha of land opposite the Black and Flagstaff roads roundabout.
Adelaide Development Company chief executive Ian Marker said it completely “caught us by surprise”.
“It means that we have to go back to the drawing board and see if we can rejig it in a way that might be still providing what the community wants, but without such a large operator as the anchor,” Mr Marker said.
“It’s disappointing from our point of view but we’ve been keen to make people understand it wasn’t us that stopped it.
“It seems to be that the perception of SA is just not a good place to invest at the moment from the eastern states.”
Onkaparinga Council approved scaled-back plans for the centre last year after businesses wanted a smaller floor space.
The developers had hoped to open the centre last year.
Stage one was expected to include a two-level shopping complex, supermarket, liquor store, medical centre, mall and parking.
Mr Marker said negotiations with other companies interested in the complex were already under way.
He hoped the company could “come up with a solution” to keep its other smaller tenancies.
“We are not going to give up yet,” Mr Marker said.
“It’s costing us a lot of money on consultants and designers and architects to get to this point — and it costs us rates and taxes.”
A spokesperson for Coles said the company hadn’t formally agreed to be part of the planned new complex.
“Coles had not confirmed development plans at Flagstaff Hill and always maintained that any potential plans were subject to Board approval,” she said.
“We have made a decision to focus on providing great quality, service and value to our customers at our existing supermarkets in the area.”