Festival State Building Group – the developers behind the proposal – told InDaily the mixed-use project would feature about eight levels of hotel rooms, five floors of office space, a communal rooftop and function area, as well as a bar and restaurant on the ground floor.
Group building supervisor Lou DeRosa said the estimated $14 million development on the corner of King William and Gilbert streets was the company’s first foray into large-scale developments and the group was “looking to positively contribute to the city with this new project”.
“It’s one of the major entries into the city and so we want to get it right,” he said.
DeRosa said the group had purchased the block in May 2019. It came after the former property developer, Chinese billionaire Cheng Hui Xu through his company Tangcheng Holdings, pulled out of a student accommodation project originally slated for the site.
The student accommodation proposal received criticism at the time from both Adelaide City Council and the State Planning Commission for its tiny apartment sizes and insufficient natural light and ventilation.
Documents from the Department of Planning, Transport and Infrastructure show Tangcheng’s proposed development was originally intended as a 15-storey, 84 apartment student accommodation tower with a restaurant on the ground floor.
According to realestate.com.au the King William Street block sold for $1.2 million in 2019, which was about $1.5 million short of its previous going price of $2.7 million in 2017 and still $700,000 shy of the $2 million is sold for in 2010.
Festival State Building Group’s development proposal is due to go before Adelaide City Council next month with the Government Architect to examine the design and plan in April.
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