Melbourne-based property developer ICD Property will on November 28 provide formal notice to the Adelaide City Council of its intention to start building the 38-storey retail, office, hotel and residential development in June.

Current Central Market Arcade traders will also be informed of the construction start date in accordance with lease terms.

The $400 million redevelopment, which is part-funded by ICD Property and city ratepayers, includes demolishing the Central Market Arcade last developed in the 1960s to build new shops and restaurants connected to the Central Market, as well as offices, a hotel and residential apartments.

ICD Property will own and manage the central tower – named Market Square – which will include the residential, office and hotel component of the development, as well as an elevated 3000-square-metre public terrace.

The bottom floors will be connected to the Central Market and will include a range of food, wine and homewares shops, as well as restaurants, cafés and bars, which will be open 18-hours a day, seven days a week.

Restaurant and retail areas in the redeveloped Central Market Arcade. Render: ICD Property

InDaily reported in June that construction on the project had been pushed back from September, with ICD Property managing director Matthew Khoo saying at the time that his company was “probably a little bit ambitious in fronting a 2021 start date”.

The developer previously anticipated that the redeveloped arcade would open in March 2024, but it now expects construction to take three and half years once it begins in June.

Khoo said “despite the challenges posed by COVID in the past two years”, his company was “on track to deliver this once in a generation project”.

“We have been working closely with the City of Adelaide and the Adelaide Central Market Authority every step of the way and will continue to do so moving forward in order to support traders through this transition,” he said.

Render: ICD Property

ICD Property has so far sold over 80 per cent of the development’s residential apartments prior to the public launch.

In a statement, it said there had also been “overwhelming demand” for retail, hotel and office space.

A builder is scheduled to be appointed later this year, with some “enabling works” to prepare the site for redevelopment expected to start before June, during which time the Central Market Arcade will remain open.

ICD Property said due to the size of the project, construction would take place in stages, with the neighbouring Central Market to stay open throughout the redevelopment.

Image: ICD Property

Lord Mayor Sandy Verschoor said providing early advice on the construction timeframe “reflects our commitment to provide certainty and early notice to precinct stakeholders”.

“It’s exciting to be taking this major step forward to realising what will be a city-shaping project for Adelaide and South Australia,” she said.

The Adelaide City Council previously said it was contributing $28 million towards the $400 million project.

In a report presented to councillors on Tuesday, the council stated it had budgeted $22.6 million.