Flagship Group to build 192 apartments behind vacant Royal Hotel, Kent Town in $105m spend

A troubled city pub is set to transformed – again – under government-backed plans for a $105m apartment redevelopment featuring nearly 200 properties.

Nearly 200 apartments could be built behind a refurbished state heritage-listed Royal Hotel under a $105m state government-backed redevelopment of the premium Kent Town site.

Victorian developer Flagship Group wants to erect two apartment towers – one featuring 102 rental units and the other 90 properties available for purchase – next to the hotel on the corner of North Tce and Dequetteville Tce.

The proposed buildings would be 13 and 14 storeys in height in a location zoned for a maximum 10-storey limit.

A fifth of the properties would be sold as affordable housing, priced at less than $422,050.

The North Terrace entry to a proposed $105m, 192 apartment development behind the Royal Hotel at Kent Town. Picture: City Collective

The state government’s property arm, Renewal SA, is backing the project by offering to buy any of the affordable properties if they were not sold to the private market by the time construction finishes.

Flagship Group’s apartment Flagship Group has released plans for a $105m, 192 apartment development next to a refurbished Royal Hotel, Kent Town. Picture: City Collective

The apartments achieve a minimum 7.5-star energy rating and be 100 per cent powered by renewable energy.

The development would include car sharing, electric vehicle charging and bike storage facilities. Apartments would range from studios to three bedrooms.

It is expected to create 577 jobs during construction.

Treasurer Rob Lucas said the project would be the “jewel in the crown of Kent Town” and be a “key economic driver”.

Flagship’s proposal is a significant departure from its previous design for the land, approved six years ago, featuring 128 apartments in three curved 15-storey towers designed by Woods Bagot.

Flagship’s earlier plans, approved in 2015, for 128 apartments next to the Royal Hotel

The 144-year-old Royal Hotel has been closed since July 2019 after the collapse of pub operator Entertainment Venues Australia, which had only reopened the pub five months earlier after a refurbishment.

The pub had been closed for two years when EVA’s director Elli Cakar took over the leasehold from previous operator Andrew Gunn, who had placed the business into administration.

The Flagship Group is not intending to reopen The Royal as a pub and gaming venue, rather the company says the restoration will focus on potential office space and a “light food and beverage offering”.

The Royal Hotel pictured in February 2019 ahead of its short-lived reopening under management of failed pub operator Entertainment Venues Australia. Picture: Dean Martin

Renewal SA senior director of housing, Mike Philippou, said Renewal SA’s backing meant work could get underway “immediately” with the properties to be built concurrently.

“With the Housing Industry of Australia forecasting a significant decline in construction commencements late next year, this is another project that will come at a vital time for South Australia,” he said.

The project is yet to be lodged with the State Commission Assessment Panel for consideration.

The rental properties will be offered to the public at market rate and will be managed by an international build-to-rent operator.

Flagship Group chief executive Mark Jarman said the project would create a new gateway to Kent Town.

Flagship Group built the Kodo and Penny Place apartment projects next to the Federal Court precinct in the CBD.