The council on Thursday said it had bought 218-232 Flinders Street – a 2093 square-metre car park located near the corner of Flinders and Frome streets.

The land is zoned for “high-intensity and large-scale development” with a maximum height of 53 metres.

The council paid $8.15 million for the site, according to a person familiar with the sale, while the council has not publicly disclosed the purchase price citing commercial in confidence.

The council said it wants to prioritise affordable accommodation for the site, including build-to-rent housing, and will investigate opportunities to partner with community housing providers, the State Government or private developers.

An aerial view of the 218-235 Flinders Street land parcel. Photo: realcommercial.com.au

Lord Mayor Jane Lomax-Smith, who has set a goal to increase the City of Adelaide’s population from 26,000 to 50,000 by 2036, said the Flinders Street site could help tackle the housing crisis.

“Tightly held sites in the city’s east don’t come up often and we knew that with the multitude of uses this site could provide, it would be a smart acquisition by Council,” Lomax-Smith said in a statement.

“Associated community facilities or retail may also be in the mix, but I hasten to add that these discussions are still to take place and we will be asking our community what they want to see at the site.

“Council will proceed with site investigations, then establish a masterplan and guiding principles which will support a meaningful public consultation process prior to redevelopment occurring.”

The property, previously owned by Damian Lester, will remain a car park until it is redeveloped, with the council’s UPark having already taken over operations.

In April, the council announced it would sell the former Franklin Street bus terminal to Renewal SA in 2025. That site, also currently a car park, is earmarked for a major mixed-use housing development featuring 392 apartments and a 208-room hotel within twin 26- and 18-storey towers.