The government announced the move overnight, saying the “sleek, modern” tower would have 36 floors of commercial office space, and “two floors of high quality food and beverage space with direct access from Festival Plaza”.

The second Festival Plaza tower proposed for behind Parliament House. Image: supplied

While the press release says “New tower to transform Festival Plaza” and spruiks its design and economic benefits, the government says Cabinet has “approved an agreement to pursue the development” and planning approval would now be sought.

The government also said the 38-storey tower “delivers an improved heritage outcome” over the three-storey building first planned, “which would have obscured views of Parliament’s heritage facade and balcony entirely”.

The original three-storey building proposed for the Festival Plaza. Image: Johnson Pilton Walker

Instead, the proposed new tower would would have a “grand glass foyer offering continuous sight lines between Parliament House and Festival Plaza, and improved public spaces”.

“The additional public space between the new tower and Walker Corporation’s recently completed One Festival Tower will open up view lines to and from Parliament House, creating a heightened physical connection to the State Heritage-listed building, and may incorporate an eye-catching public art,” the press release said.

“The new communal space will also complement the broader plaza experience. Its design will support a diverse range of outdoor dining and activations, fostering a welcoming environment that encourages people to gather, linger, and enjoy the space, thereby enriching the visitor experience.

“A code amendment specific to the Festival Plaza footprint will be initiated and will consider aspects such as building height, design, heritage and interface with the Riverbank Precinct’s existing infrastructure.”

Walker Corporation’s new 38-storey tower is expected to be built to the left of its 29-storey tower on Festival Plaza, behind Parliament House. Photo: Tony Lewis/InDaily

Construction is expected to begin in 2025 subject to planning approvals and tenancy agreements, with a completion date as early as mid-2027.

The government said the development was expected to attract another 9500 workers to the Riverbank Precinct.

“Our state is growing up,” said Premier Peter Malinauskas.

“This is a meaningful demonstration of private capital investment showing confidence in the future of our state.

“This new tower speaks to the growing confidence in South Australia, which now has the lowest unemployment rate in the country and the nation’s strongest economy.

“Importantly, this proposal delivers more public space in Festival Plaza and a better heritage outcome for Parliament House.”

Planning Minister Nick Champion in September 2022 told InDaily that the three-storey building first planned for the site was a “lost opportunity”.

In March 2023, Walker Corporation handed the state government its formal proposal for a second Festival Plaza tower. 

InDaily asked the state government on numerous occasions for details of how high the new tower would be, but was told such information was “commercial in confidence”.

Champion said today that that the second Festival Plaza tower would “further rejuvenate an underutilised area in the Riverbank precinct”.

“The community space will add much needed retail, food and beverage options in an area that will be bustling with close to 10,000 daily workers,” he said.

“This project will activate a strategic area of the city while creating more than a thousand jobs during construction.

“The new tower will be an important feature in the ongoing transformation of Festival Plaza, which also includes upgrades to the neighbouring Railway Station, Festival Theatre, SkyCity and Elder Park.”

But Greens planning spokesman Robert Simms said he was “shocked and disappointed” by the plans.

“I knew that there was going to be a three storey tower that had already been approved, but to see that project now blowing out to 38 storeys, I just think it’s an outrageous location,” he told ABC Radio Adelaide.

“You know, this is our key civic space … and now we’re going to have this monstrosity totally dominating that space. And if ever there was a symbol of the power of developers in our democracy, this is it.

“The Walker Corporation totally dominating Festival Plaza. I mean, surely there could have been a better use for that space found by the government.”