Lion, McMahon to prepare West End site for sale

The brewery owner will ready the site for a sale to developers, but exactly what will be built is unknown – especially given plans for the nearby Entertainment Centre.

The West End Brewery site will close in June. Picture: Naomi Jellicoe

The operator of West End Brewery will spend 18 months preparing the site for a new owner following the upcoming closure of the facility in June.

Drinks group Lion has appointed local construction company McMahon Services to oversee a “transformation” of the 8.2ha site, including demolition of existing buildings, remediation of the site and rezoning ahead of a potential redevelopment.

The company would not comment on when the property would hit the market, but described the site as “one of South Australia’s most important inner-city redevelopments”.

Asset, services and environmental technical studies will commence imminently, while works on site will start in July, following the end of brewing operations in June.

The West End Brewery will be closed in June after 160 years of brewing history in South Australia. Picture: NCA NewsWire / Brenton Edwards

Urban Development Institute SA chief executive Pat Gerace said major developers across the country were likely to bid for the West End site, but uncertainty surrounding the future of the nearby Entertainment Centre was likely to be a consideration.

“The biggest thing that has changed since Lion announced the closure of the brewery is that the government has announced its plans for the new city stadium if it’s returned to power, and the sale of the Entertainment Centre site directly across the road from the brewery,” he said.

“The question will be what is going to be put on that site?

“It’s not unreasonable to expect the government to outline its intentions for the Entertainment Centre site as early as possible, given its location and size, as well as the fact there are a number of private sector businesses who own sites very close to that site.”

The State Government plans to sell off the Entertainment Centre to developers to help pay for its planned CBD arena west of the Morphett Street bridge.

Property experts have previously suggested the sprawling West End site could attract offers up to $60m, while the United Workers Union prepared its own valuation during redundancy negotiations with Lion, suggesting the site could fetch close to $80m.

The West End Brewery viewed from Port Road. Picture: NCA NewsWire / Brenton Edwards

The $78.8m valuation was based on a development including 480 residential units.

Mr Gerace said the expansive site would likely accommodate a mixed-use development, and should complement other future developments along Port Road.

“It’s a prime infill location so one would think that, subject to environmental considerations and potentially height restrictions given the flight path, that the infrastructure is there for the site to be rezoned residential,” he said.

“It really forms part of a long stretch of development that will take place over the next decade or so, from the Coke factory right through to the Entertainment Centre, so the question will be how integrated all that will be.”

Lion said it would work with McMahon Services to determine whether any existing buildings would be retained for potential re-use by a new owner.

Meanwhile a level of underground contamination is expected, given the site has largely been untouched for more than 100 years.

Lion group engineering and environment director Luke Sawyer said the company was pleased to be partnering with a local South Australian business to oversee the site’s transformation.

“I have many fond memories of this site – just as I know our current and former team members do,” he said.

“While we recognise the news of the site transformation will be met with sadness by many, we are committed to ensuring it is appropriately repurposed for future use.”

Originally published as Lion, McMahon to prepare West End site for sale