Not again: Proposed sale of State Administration Centre precinct still remains without potential buyer

THE State Government will be hoping for a case of fourth time lucky, with the proposed sale of the State Administration Centre precinct understood to have again faltered.

The State Administration Centre.

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THE State Government will be hoping for a case of fourth time lucky, with the proposed sale of the State Administration Centre precinct understood to have again faltered.

More than two years after the government’s headquarters was placed on the market, and more than eight since its sale was first flagged, the group of about $210 million worth of assets, including the flagship State Administration Centre on Victoria Square, is still to find a buyer.

Initially, Adelaide businessman Jason Di Iulio was named as the preferred bidder for the assets.

After those talks broke down, three bidders were short-listed, with Adelaide company Commercial & General winning the right to bid.

C & G failed to raise the funds to complete the deal, however, and sacrificed a $5 million deposit in the process.

Then, in March this year, the State Government approached Funds SA – which administers more than $25 billion for the state’s public sector super funds and other public bodies – to run the ruler over the assets with a view to making a bid.

Former treasurer and now Funds SA chairman Kevin Foley said this week that Funds SA “complied” with what the Government asked it to do in looking at the assets but he would not elaborate on whether a formal offer was made. It is understood a deal couldn’t be struck to the satisfaction of both parties.

Failure to close a deal has left Opposition Treasury spokesman Rob Lucas unimpressed.

A spokesman for Treasurer Tom Koutsantonis didn’t answer questions about what the Funds SA response was or explain what the plan to sell the assets was now.

“A consortium led by Hames Sharley has been appointed to advise the Government on options,’’ he said.

“For commercial reasons, the Government does not comment on potential bids while such a process is under way. Any decision on the State Administration Centre will be a matter for Cabinet.’’

Opposition Treasury spokesman Rob Lucas said the failure to close a deal was unimpressive.

“This is yet another example of financial mismanagement and the incompetence of the Weatherill Labor Government,’’ he said.

“This sale of the State Administration precinct was announced almost nine years ago in December, 2008, partly in response to the Global Financial Crisis.’’

Mr Lucas said the Government had to go back to square one and had to employ a consultant to come up with a solution to the problem.