Chinese investor Nanshan Singapore pulls out of $400m Adelaide Central Market Arcade redevelopment
A key player in the $400m Central Market Arcade redevelopment has pulled out over an elected official’s negative public comments about its links to China.
SA News
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A Chinese-backed investment company has pulled out of the $400m redevelopment of the Adelaide Central Market Arcade, with the developer vowing the project will proceed.
ICD Property said the decision by Nanshan Singapore followed negative public commentary about the conglomerate’s alleged links to the Chinese government.
Adelaide City councillor Phillip Martin questioned the relationship between former chairman Song Zuowen and the Chinese Communist Party during council meetings and radio interviews in September.
This followed Nanshan becoming a 10 per cent investor in a joint venture between ICD and Adelaide City Council to build two towers on the existing Central Market Arcade site.
Plans for the development were lodged late last week with the State Commission Assessment Panel but no mention was made in publicity material about Nanshan.
ICD Property managing director Matt Khoo on Wednesday morning confirmed the Singapore-based company had withdrawn from the project.
“Nanshan Singapore’s withdrawal comes following negative public statements in various forms which misrepresented their character and brand,” he said.
“As a huge disappointment to South Australia, they have decided to withdraw from the project and focus their energy on the eastern seaboard.
“At a time when the local economy, more than ever, needs strong, consistent investment in the state to drive job growth and retention, this is a regrettable result.”
Mr Khoo described Nanshan Singapore as a “minority equity partner” in the project, which includes 11,172 sqm of retail space, a central hall, public rooftop, child care centre, a 38-storey tower containing a hotel and apartments and another tower with offices.
“This minority investment withdrawal will not impact the project,” said Mr Khoo.
“We are already in conversations with other potential investors to fulfil Nanshan’s previous minority investment commitments.
“However, if necessary, ICD Property will fulfil Nanshan’s previous investment commitment ourselves.”
Mr Khoo said that, “regardless of the outcome”, ICD Property was “fully equipped and able to complete the Central Market Arcade redevelopment in accordance with our obligations as set out under the project delivery agreement entered into with the City of Adelaide”.
A council spokesman said the council would continue working with ICD Property to redevelop the arcade.
“We have developed a trusted and valued partnership with ICD Property throughout the entire process to date,” he said.
“As far as we are concerned it’s all systems go on this city-shaping project and ICD has confirmed its commitment to equity funding.”
WHAT IS NANSHAN SINGAPORE?
Nanshan Singapore is a subsidiary of the Nanshan Group, a Chinese conglomerate based in South Australia’s sister state, Shandong.
It has been approved by the Foreign Investment Review Board to invest in numerous projects across Australia.
This includes $85m into the Pullam Sydney Airport Hotel development, $225m for the Riverside Oaks golf and tourism resort in NSW and various investments into the Australian wool industry, including creating an international wool education centre.
Nanshan has operations in aluminium, textiles, finance, tourism, aviation, health, education and real estate.
It was ranked 176th in the Top 500 Enterprises of China and employs 40,000 people in China, Australia, United States, Italy, Indonesia and Singapore.
Until recently, Nanshan held a 20 per cent in Virgin Australia.
