Developer Gurner has teamed up with Kennards Self Storage with plans to build a $1.25 billion major mixed-use development in Adelaide.
The joint venture intends to develop the 1.7-hectare site at 237 Grote Street into more than 750 residences with six-star amenity across four towers.
The new precinct will also feature a five-star hotel, more than 15,000 sqm in retail and commercial space, an entertainment and recreation component and a public plaza.
The project doesn’t have a permit in place for the site yet, however Gurner said the current zoning and planning controls allowed for a transformative mixed-use development.
Kennards, which owns the site, will establish its South Australia headquarters in the new precinct.
The project will also transform a former Australia Post facility spanning six levels on the site into a next-generation storage facility.
Kennards Self Storage CEO Sam Kennard said they were delighted to partner with a forward-thinking developer to create a unique precinct for Adelaide and a first for their industry at the same time.
“When we originally purchased the site in 2020, we had seven existing locations in Adelaide but had been searching for the right CBD location for a number of years,” Kennard said.
“Originally we had identified an opportunity to re-purpose the existing building into self-storage and planned to subdivide and sell the surplus land, but COVID allowed us the time to take pause and reflect, and we soon realised the site had the potential to become a city-shaping project.
“We approached Gurner as part of a small EOI process and their vision for the site absolutely blew us away – there is no doubt their bold proposal will create a new landmark for Adelaide’s CBD.”
Gurner CEO Tim Gurner said Adelaide was one of Australia’s cultural epicentres.
“This is a very significant transaction in terms of scale and value for the Adelaide market, which reflects the confidence we have in the market and its fundamentals – we have been waiting for the right time to enter South Australia, and we think that time is now,” Gurner said.
A lead architect had not yet been appointed for the project, and the development application was expected to be lodged in late 2022.