Pelligra Group axes $20m plan for ice arena in Marion

A major developer has scrapped its plan for a $20m ice arena in Marion due to skyrocketing construction costs. Find out what it means for its other arena in Elizabeth.

A plan for a $20m ice arena and rock climbing facility in Marion has been scrapped by the developer due to increased construction costs.

Marion Council and the Pelligra Group released a joint statement that said after “extensive deliberation” both parties mutually agreed the project would not proceed.

In 2021, the Pelligra Group outlined its plan to lease a 10,000sq m parcel of council-owned land on Sturt Rd, Marion, to build the ice arena with seating for up to 450 spectators.

Pelligra Group lodged plans for a $20m ice rink and indoor rock climbing development at Marion last year. Picture: City of Marion

“After receiving strong community support for a local ice rink, Marion Council negotiated a 42-year lease with developer Pelligra Group,” the statement said.

“However, Pelligra has found the commercial climate has changed, much higher financing costs and construction costs associated with labour and supply chains, mean the project is no longer viable.”

In June, the development came under fresh criticism as it would involve the removal of two significant gum trees, with an 800-signatory petition lodged against the build.

Two significant trees at the site of the proposed ice arena in Marion. Picture: Kelly Barnes

The Pelligra Group SA director, Stephen Wren, said three years ago their solely-funded project “stacked up”, but now without outside funding it was made more difficult.

“It’s a different financial market place now,” Mr Wren said.

“When you look at the cost of delivering construction, it’s skyrocketed and it’s only going to get worse.

“Then you have the issue of the two significant trees which has caused considerable public angst and significant delays to the project.

“We had to change the design three times to try and comply with the trees.”

Mr Wren said their plan for a sports hub and ice arena at Elizabeth was “full steam ahead” and had received planning approval, with construction soon to start soon.

Artist's impression of the ice sports arena, rock-climbing facility and sports centre in Elizabeth by Pelligra Group. Picture: City Collective

“We’re actually in a great shape up there in Playford – it’s a completely different development,” he said.

“These arrangements are commercial in confidence, but the size of the land, tenure, cost and what’s going in are all completely different.”

He said Adelaide’s only ice arena in Thebarton was “extremely well past its use by date and that’s why it’s vital we make sure Playford happens as soon as possible”.

Exterior images of the Adelaide Ice Arena. Picture: Emma Brasier.

Marion Council mayor Kris Hanna said it was disappointing the development would not go ahead.

“The ice rink would have been extremely popular with the community and we know that from our community consultation, but it’s not to be,” Mr Hanna said.

“One of the positive outcomes here are the two old gum trees, which were inconsistent with the ice rink design, are no longer under threat.”

He said the council had made no decision regarding alternative uses for the former Marion Croquet Club site, only that it would be maintained as a sports precinct.