$40m development starts — almost 10 years after it was first approved to go up near The Highway hotel

ALMOST a decade after it was first approved, work has started on a $40 million apartment and retail development near a sprawling pub in Adelaide’s south west. Here’s what will be built first.

An artist’s impression of the big new development. Picture: Supplied by Palmer Hospitality Group

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WORK has finally started on the $40 million apartment and retail development surrounding Plympton’s The Highway hotel.

However, locals are worried it will worsen traffic snarls in the area.

Excavation work has begun on the 2ha site, and Palmer Group director Martin Palmer expects the State Government to soon give the business building approval for the project’s first stage — a $9 million four-storey 28-apartment block.

Building work would start by the end of the year.

The project, which also includes three other four-storey apartment blocks, offices and a supermarket, was first approved in 2007 but scaled back in 2013.

An artist’s impression of the development near The Highway Hotel. Picture: Supplied: Palmer Hospitality Group

“I think it’s very exciting,” Mr Palmer said.

“We’re not there yet but it’s the culmination of a lot of investment in time and money.”

A 2013 Planning Department report said the project would “generate an increase in the amount of traffic on the existing network”, with congestion particularly increasing on Marion Rd between Anzac Highway and Elizabeth Ave, which cars will use to access some of the apartments.

West Torrens councillor Arthur Mangos said traffic congestion in the area was already bad and the development would make it worse.

“I’m concerned the traffic build-up in the area is going to be absolutely obnoxious,” Cr Mangos said.

The development is near The Highway hotel.

While Mr Palmer said many apartment residents would not need cars because it was close to the tram and bus stops, Cr Mangos said the reality was people would still use them and create traffic.

“It doesn’t matter what you do, people use cars,” Cr Mangos said.

He suggested indenting bus stops on Marion Rd, and merging the two between Anzac Highway and the tram line to ease congestion.

A week before the election, Prime Minister Malcolm Turnbull announced $2 million for a study into the best way to reduce traffic on Marion Rd between Anzac Highway and Cross Rd.

The planning work will look at either turning part of Marion Rd into an underpass that would stretch from before the tramline to after Cross Rd, or raising the tram line above Marion and Cross roads.

No funding has been committed for the work itself by the federal or state governments.

Mayor John Trainer said it would be best if the project was underway before the apartment development was complete.

“It’s something that needs a massive overhaul,” Mr Trainer said.

The Palmer Group will rent the apartments out at between $300 and $400 per week.

“Ultimately, that should make for better development because the person building it is invested in its longevity,” Mr Palmer said.

“It’s recognising the need for affordable housing in well-located inner suburban areas that are well served by public transport.

“We’re hoping to build services around the area that are lacking — a supermarket and good local specialty retail, particularly with a food and lifestyle focus.”

The whole development could take up to six years to complete, he said.