Massive Adelaide development site attracts million-dollar interest

The Advertiser can reveal a massive CBD land area has attracted offers in the tens of millions of dollars from developers.

The former bus station site at 111-129 Franklin Street.

Adelaide’s biggest CBD development has begun with the council selecting a $30m deal as the preferred tender at a secret meeting on Tuesday night.

The Advertiser can reveal the massive land area west of the Franklin St interstate bus terminal was the subject of multiple offers from interested developers for a tower development.

At 6,800 square metres the footprint will be more than 12 times the size of the average 541 square metre suburban block in greater Adelaide.

It is close to the size of the former Le Cornu site in North Adelaide, which is approved for three towers with a total of 33 storeys.

After ejecting the public from the council meeting on Tuesday night, councillors selected the tenderer for what will become a major housing project and decided on a series of extra benefits it hopes to extract for ratepayers from the developers.

The former bus station site at 111-129 Franklin Street.

The former bus station site at 111-129 Franklin Street.

It is the first time the council has put a price on the 111-129 Franklin Street property, with $30m being the starting point for talks.

The previous council had not set any strong conditions benefiting ratepayers on development, but the new green/left dominated body is likely to want more.

Adelaide Central Market chair and CBD development pioneer Theo Maras said the site was a “golden opportunity” for Adelaide because if its size and location.

“This will be a people’s place of remarkable size and it is gold,’’ he said.

“It will be a social environment of huge power and influence in that area of the city.

“We are short of people in every area of employment, and that is in part because what is the point of taking up a job (in the city) if you have nowhere to live.

“Residential development is very very much needed. There is a total shortage of every level of housing from social, key worker, affordable, and high standard housing.”

The former bus station site at 111-129 Franklin Street.

The former bus station site at 111-129 Franklin Street.

The preferred tenderer remains secret to protect commercial-in-confidence considerations, but the deal is being co-ordinated by JLL Adelaide.

Plans to do something with the mainly disused site date back to 1991 when discussions to move the dated bus terminal began.

The Advertiser revealed last month Lord Mayor Jane Lomax-Smith was pushing an agenda for low-cost housing solutions on council owned land.

The sale will fuel debate within council about a possible significant rates increase.

Revenue has been increased in recent years only by property value increases and growth.

Since the November 2022 election the council has been dominated by green/left councillors, with few of the former economically conservative Team Adelaide members remaining.

The Advertiser understands the latter will use the around $30 million bus depot sale as an argument for smaller rate rises.