Deal sealed for Adelaide’s Festival Plaza with Lang Walker after almost a decade

A deal has finally been sealed with Sydney property tycoon Lang Walker to redevelop some of Adelaide’s most prized riverfront land. See the pictures.

A dramatically revamped Festival Plaza will open for March’s festival season after almost a decade’s wrangling over the $663m redevelopment of some of Adelaide’s most prized land.

Under the final deal with Sydney property tycoon Lang Walker hammered out by Treasurer Rob Lucas, an office tower of up to 29 storeys will be built on the plaza – bounded by Parliament House, the festival centre, casino and King William Rd.

A significant, unspecified cost blowout to the public plaza’s $253.5m transformation would be shouldered by Walker Corporation, Mr Lucas said, in return for concessions including two potential extra levels for the now-approved, 27-storey office tower.

The first stage of the public space – scheduled to be opened by February – includes a large, interactive water feature, refurbished artworks from the original Hajek Plaza, trees and numerous 4.8m-high architecturally designed arbours.

An artist impression of Festival Plaza from King William Rd. Picture: ARM Architecture

Impression of the completed Festival Plaza showing the entire open public space in and around the Adelaide Festival Centre, casino and Walker office tower. Picture: ARM Architecture

Mr Lucas said the redevelopment would finally bring to life a 21-year-old Liberal vision for that area of the Torrens riverbank, which he unveiled as Treasurer in 2000.

“This is a once-in-a-generation development that will breathe new life into one of the most important parts of our city,” he said.

The state government will contribute $213m to the Festival Plaza redevelopment and Walker Corp $450m. A five-level, 1646-space underground carpark opened in May.

Concessions to Walker Corp include extending the lease terms for the Festival Tower, carpark and retail complex from 68 years to up to 99 years, an extra lease of air space above the three-storey retail complex and a mechanism to allow Walker to request development rights to build a second tower that it has long coveted. Mr Lucas said there had been no government commitment to take space in the tower.

The area will feature a series of architecturally-designed arbours. Picture: ARM Architecture

The area at dusk. Picture: Walker Corporation

He said a future government would have to consider a second tower and this could not occur without assessment and approval from the State Planning Commission.

“While we have received no development application for a second tower, the Marshall government has made it clear that it will not be granting any such approval even if the request was made,” Mr Lucas said.

Walker also will be able to seek planning approval for an extra 6000 sqm of space in the approved office tower.

The Walker Festival Tower. Picture: Walker Corporation

Artist impression of the Walker office tower showing the retail area to the left, and the arbours. Picture: Walker Corporation

In and around the ground floor of the office tower, at Festival Plaza. Picture: Walker Corporation

Mr Lucas said benefits to the state from the agreement would include Walker committing to finish the office tower and retail complex by no later than June, 2026 and the largest part of the public space by next January.

He said $25m of extra value for the state had been secured through extra developer funding of the public space and “ongoing financial contributions”.

The tower was first approved by the state’s planning body in 2016 after the former Labor government in 2012 gave Walker exclusive rights to develop the precinct.

Around the Festival Square office tower, at Festival Plaza. Picture: Walker Corporation

Inside the office tower. Picture: Walker Corporation

Get ready for month-long Riverbank festival

– Antimo Iannella

Plans for a new month-long festival on the banks of the River Torrens will go before Adelaide City Council this week.

Local business Penny Hospitality has lodged an application to host a late-night outdoor music event called Mango Motel right next to the site of the proposed Riverbank Arena, in December and January.

The 600-person pop-up venue will feature food stalls, bars and art installations, and operate on weekends.

But even if given the green light by council, organisers say they will “delay” the event should current dancing restrictions remain in place.

In their submission to council, the group said the area next to Helen Mayo Park – the location of Premier Steven Marshall’s election pledge to build a 15,000-seat multipurpose entertainment arena – is “under-utilised for events”.

Penny Hospitality – including Tild Ricourt, Hugo Pedlar and Jared Armour – are proposing a new festival on the banks of the River Torrens next month. Picture: Supplied

The festival will allow patrons to “unwind on a warm summer’s night along the River Torrens”, their application said.

The brainchild of Penny Hospitality director Hugo Pedler, Tild Ricourt, David Musch and Jared Armour, the festival will “spark new life into Adelaide’s hospitality and events industry”, a spokesman said. “The festival is focused on giving event-goers an immersive and fulfilling festival that will help the city come back to life following the impacts of the Covid-19 pandemic,” the spokesman said.

Seeking a licence to hold the event between December 18 and January 15, from Friday to Sunday, the group have also asked for approval to operate the venue until 2am on Fridays and Saturdays – an hour longer than stated in the Adelaide Park Lands Event Management Plan.

Penny Hospitality is behind several hospitality businesses around Adelaide, including the West Oak Hotel on Hindley St, Joe’s Henley Beach and Super Bueno on Gouger St.

Adelaide City Council will discuss the group’s plans for Mango Motel on Tuesday night.