Treasurer Tom Koutsantonis pulls plug on State Administration Centre sale

THE Government has given up on its attempts to sell its Victoria Square headquarters, finally taking the State Administration Centre off the market.

• State Admin Centre remains without a buyer

THE Government has given up on its attempts to sell its Victoria Square headquarters, finally taking the State Administration Centre off the market.

The decision came after talks with three potential buyers to buy the building as part of a $210 million asset package all failed.

Commercial & General most recently won the right to bid for the property portfolio but failed to stump up the funds by the Government’s September 2016 deadline.

A recent push for Funds SA — which administers the state’s public sector super funds — to purchase the buildings also fell over.

The State Administration Centre on Victoria Square.

Treasurer Tom Koutsantonis said the decision to sell the building was “made in a different economic environment” and its strategic importance meant it should remain in public hands.

The rest of the asset portfolio, which includes Wakefield House and the Education building on Flinders Street will return to the market late last year.

Mr Koutsantonis said the Government took a “strategic look” at the portfolio after the C&G deal collapsed.

“We’ve worked hard to cut our cloth, pay down debt and deliver surpluses since that time, and given strategic importance of the State Administration Centre, it makes sense to keep it in public hands,” he said.

Mr Koutsantonis said there was a “strong case” to sell the other properties given the recent sale of 24 Flinders Street.

“These are high value assets with the potential to trigger significant economic activity if purchased and developed by the private sector,” he said.