Festival Plaza development: Green light for $610m revamp

THE long-frustrated Festival Plaza redevelopment finally has been given State Cabinet approval, triggering a $1 billion transformation of prime riverbank land opposite Adelaide Oval.

• Approval for Festival Plaza, Casino development deal
• Court battle over Festival Plaza developer’s secret carpark letter
• State Government’s ideas for Festival Plaza overhaul
• Skycity committed to casino revamp despite delay

THE Festival Plaza redevelopment has finally been given State Cabinet approval, triggering a $1 billion transformation of prime riverbank land opposite Adelaide Oval.

Capping almost four years of talks with Sydney tycoon Lang Walker, it is understood Cabinet on Monday backed his plan for a 24-storey office tower, underground carpark and two-storey retail and entertainment complex.

A formal announcement and contract signing is expected this week with Walker Corporation, which in late 2012 won exclusive rights to develop the Festival Centre carpark and plaza.

It is also understood the development contract will be later tabled in State Parliament, because of the complex legal arrangements involving the redevelopment of the 5000sq m public-land parcel.

The approval follows intense speculation that the Walker deal was on the brink of collapse, despite an Advertiser report in March that development applications had been given a green light.

Premier Jay Weatherill unveiled plans for the $610 million plaza redevelopment in March last year, saying Walker Corp would invest $430 million and taxpayers $180 million.

Part of the Walker Corporation’s concept plans for the Festival Plaza redevelopment.

It is understood the 40,000sq m office tower will not include major government tenancies, despite previous Opposition questions of whether these or other concessions would be needed to salvage the deal.

The long-awaited development involves the Station Rd office tower, opposite Adelaide Casino and behind Old Parliament House, and a two-storey complex north of Parliament House including cafes, restaurants and luxury shops.

The tired Hajek Plaza, now a concreted open space dotted with multicoloured statues, will be overhauled and marketed as a thriving day-night city destination featuring concerts, exhibitions and pop-up food and drink stands.

Walker Corporation’s website says the project will start later this year and is expected to be completed in 2019.

An artist’s impression of part of the Festival Plaza.

The dilapidated underground carpark will be the starting point for the redevelopment. A $90 million Festival Centre upgrade involves closing over the plaza to create new entries and foyers.

Urban Development Minister Stephen Mullighan, asked to comment by The Advertiser, said through a spokeswoman there was “nothing to announce yet”.

“(We are) still working with the other parties before we can sign agreements and get started with the development,” Mr Mullighan’s spokeswoman said.

Mr Mullighan last week confirmed plans to restrict access to the Adelaide Oval footbridge next AFL season because of Festival Plaza construction work.

How it could look ... another impression of the Festival Plaza redevelopment.

A separate deal over the 1560-space carpark between Mr Walker and the Adelaide Casino, which is planning a $300 million expansion, is understood to be close to being finalised.

Casino operator SkyCity this month revealed a $243 million capital raising effort to help fund its $300 million Adelaide expansion, which includes an 80-room luxury hotel, restaurants and premium gaming areas.

Some sources close to the project accuse SkyCity of delaying the Festival Plaza project’s go-ahead, but casino sources have repeatedly insisted they need the carpark spaces to support the expansion.

Construction work affecting the casino and Adelaide Railway Station includes lowering Festival Drv, requiring the temporary closure of the railway station’s northern and forcing the diversion of already-limited footbridge traffic through an alleyway next to the Intercontinental Hotel.

A tunnel from the railway station to the footbridge was a key element of the plan unveiled by Mr Weatherill last year.

The 20,000 to 30,000 people who usually use the footbridge in the 20-45 minutes after AFL games will be encouraged to use the King William St bridge over the River Torrens or delay their departure from Adelaide Oval to avoid a crush.

How the development has progressed

2012: Walker Corporation wins exclusive rights to develop the Festival Centre plaza and car park.

August, 2014: The Advertiser reveals development plans are stalled because of a legal battle over whether Walker Corp can build a multistorey office tower, which the State Government was opposing.

December, 2014: Long-running talks about the development are in their final stages, The Advertiser reports.

March, 2015: Premier Jay Weatherill unveils plans for the $610 million Festival Plaza redevelopment, including the car park, office tower, entertainment and retail complex. Plans include a $90 million Festival Centre upgrade and tunnel from the Adelaide Railway Station to the Adelaide Oval footbridge.

November, 2015: SkyCity releases detail of $300 million expansion, including an 80-room luxury hotel and signature restaurants.

March, 2016: Festival Plaza project gets state tick of approval but final formal approval process still required, The Advertiser reports.

May 11, 2016: SkyCity says it remains committed to expansion despite pushing out completion date to 2020 and start date until second half of 2017. Reveals plans to raise $243 million to fund Adelaide upgrade and other projects.

May 23, 2016: State Cabinet approves Walker Corporation plans for 24-storey office tower, underground carpark and two-storey complex of restaurants, luxury shops, cafes and bars.