Renewal SA acquires former Kaufland sites at Forestville and Prospect

Months after being abandoned by supermarket giant Kaufland, two major tracts of land in Adelaide’s inner suburbs have been acquired by the State Government, which will lead a development that could include close to 500 new homes.

The State Government’s development body has confirmed its acquisition of two major tracts of land abandoned by international supermarket group Kaufland, and is in talks with the Federal Government about a potential development of the nearby Keswick Barracks.

The two sites, on Anzac Highway at Forestville and Churchill Road at Prospect, have been acquired for an undisclosed sum following Kaufland’s exit from the Australian grocery market at the start of the year.

Kaufland acquired the Anzac Hwy property for $25m in 2017 and paid $12.5m for the Churchill Rd site last year.

The Forestville site comprises close to 36,000sq m of land and was formerly home to the Le Cornu furniture store, while the Prospect site stretches across 23,600sq m.

Renewal SA will develop masterplans for each site and will seek interest from the private sector to partner on the projects later this year.

The former Le Cornu site on Anzac Highway as been acquired by the State Government for an undisclosed sum.

Early designs suggest 300 homes could be built at Forestville, with 15 per cent set aside for affordable housing, while more than 180 homes could be delivered at Prospect, with 60 per cent dedicated to affordable and social housing.

The developments are expected to support an average of 170 jobs over the five-to-six year development period, with construction expected to commence next year.

Renewal SA said the Forestville site was one of the last remaining vacant city fringe sites, and was suited to a mixed-use development comprising residential, commercial and retail components.

“They are a bit different - Prospect we probably see as slightly lower density, low rise apartments and townhouses,” Renewal SA chief executive Chris Menz said.

“Given the location of the Anzac Highway site and the zoning, it’s probably more likely to be medium density, so medium rise apartments and townhouses.

“We will be working with the private sector and seeking their additional investment and timely delivery of Forestville and Prospect developments.”

The former Kaufland site on Churchill Rd at Prospect.

Mr Menz said Renewal SA would likely partner with a single developer on the Forestville project, while multiple development partners could be engaged at Prospect, including community housing providers.

He also confirmed discussions were being held with the Commonwealth on a potential development of the nearby Keswick Barracks.

“I think that would be a great outcome but speed is critical here,” he said.

“If we want to see investment in the state then we need to move quickly on the old Le Cornu site.”

The Advertiser reported on the Government’s interest in acquiring the two sites in June, when Urban Development Institute SA chief executive Pat Gerace warned it should only compete with the private sector for prime development sites when there’s a compelling public interest reason to do so.

A highlighted area encompassing the Keswick Barracks and old Le Cornu site on Anzac Highway. Picture: Metromap

On Thursday he said the industry group would retain a strong interest in the Government’s plans for the Forestville site.

“There’s no doubt with the significant investment in the train station, the proximity to the city and the blue chip nature of the surrounding suburbs, what is critical is that whatever happens is of a quality that people expect in that area,” he said.

“I think there’s an opportunity to have medium density on that site and what would need to accompany that is a very substantial investment in the surrounding public realm.”

Originally published as Renewal SA acquires former Kaufland sites at Forestville and Prospect