High-rise development vision for new North Terrace site
The state government is looking for a developer to put forward a “city defining project” idea for a prime parcel of CBD land it has purchased on North Terrace.
Housing and Urban Development Minister Nick Champion revealed today that the state government has purchased the Budget car rental site on the corner of North Terrace and Frome Road for $7.5 million.
The site will be amalgamated with the neighbouring land at 275 North Terrace, a former SA Health facility that the government already owns, to create a combined 2800-square metre development site.
The government intends to sell the land to a developer who can transform it into a major CBD development. The state government’s land agency, Renewal SA, today opened expressions of interest for developers to purchase the site. The process is expected to run into the new year.
The government says the land has a number of possibilities, including market and build-to-rent apartments, student accommodation or a hotel. Ground-floor shops and hospitality spaces are also on the cards.
275 North Terrace (left) next to the Budget car rentals at 274 North Terrace. Photo: Thomas Kelsall/InDaily
Budget car rentals on the corner of North Terrace and Frome Street. Photo: Thomas Kelsall/InDaily
The site is opposite the University of Adelaide, Lot Fourteen and the Crowne Plaza building, which is currently Adelaide’s tallest tower.
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It is also only 100 metres east of the 37-storey, 183-metre-tall Keystone Tower slated for construction Freemasons Grand Lodge. The tower, which would become Adelaide’s tallest if completed, was granted planning approval in July.
Champion today touted 274-275 North Terrace’s potential to house Adelaide’s new tallest building in a “city defining project”.
The site has capital city zoning with a height limit of 53-metres, but this is likely to be exceeded due to incentives in the planning code for affordable housing and significant development sites.
An aerial shot of the skyline along North Terrace and Frome Road. Photo: supplied
Champion also said the government was open to upzoning the land if a developer wants to go higher.
“It’s important with these sites because they are rare,” he said.
“North Terrace is, a stunning boulevard. There are already tall buildings along it, but it’s important that we get a really great mixed-use outcome.
“We have said that we want high quality design and we want to have the most opportunity for developers to bring a high-quality investment to this part of town.
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“We’re not going to get another site like this – this one knocks it out of the park.”
Housing and Urban Development Minister Nick Champion with Property Council SA executive director Bruce Djite and Member for Adelaide Lucy Hood. Photo: Thomas Kelsall/InDaily
Budget car rentals will continue operating under a leaseback arrangement with the state government while the company makes plans to relocate its operations. The former SA Health building at 275 North Terrace will be demolished.
The state government’s negotiations to purchase the land took more than 12 months, said Champion, who indicated it was one of the first projects he inquired to Renewal SA about as minister.
Champion said a “derelict ex-government building and a car hire site” was not an ideal land use on North Terrace.
“What we want on this boulevard is really, really high-value investment to deliver high-value housing, mixed-use projects for this city,” he said.
The government estimates the project could generate more than $250 million in construction activity and around $450 million in market value when completed.
The North Terrace land purchase is the latest in a series of property acquisitions by the Malinauskas Government intended to spur housing development – a process which has at time been controversial with the property and development sector.
Last year, Renewal SA purchased the former Franklin Street bus terminal site and announced plans for a twin tower complex featuring a 26-storey building, nearly 400 new apartments and a hotel.
The state government also acquired the old Thebarton Brewery land in September 2023 for $61 million with the hopes of building 1000 new homes with at least 20 per cent affordable housing.
The University of South Australia’s Magill Campus also sits on the government’s books as a future housing opportunity. Renewal SA purchased the land for $64.5 million last year as part of the Malinauskas Government’s financial support package for the university merger.
