A 30-floor hotel and residential apartment development has been proposed for a prime Adelaide city address, following an agreement struck in Singapore.
South Australian based development company LGB Australia and the Singapore based Park Hotel Group have signed a Management Agreement to develop the 51 Pirie Street site which was acquired earlier this year.
The proposed development would stretch 30-levels high and include a 10-floor hotel with 250 upscale 4-star rooms and facilities. It would also comprise 280 residential apartments.
Designed by GHDWOODHEAD Architects, other features would include a café, bar and dining facilities, meeting rooms, gymnasium with sauna, open air sky-deck with pool and car parking.
Minister for Investment and Trade Martin Hamilton-Smith attended the official signing ceremony yesterday during the State Government led trade mission to South East Asia.
"This is a coup for South Australia – an upscale city hotel would boost our $5 billion tourism industry and support the more than 33,000 people it employs," Mr Hamilton-Smith said.
"A $175 million development would be a positive addition to our vibrant city and highlights the potential benefits of engaging with international investors."
LGB Australia is a new development group targeting development projects in Australia, Singapore and Vietnam.
LGB Australia Chief Executive Officer Raymond Chia said the proposed development on Pirie Street is its maiden project in the Australian hotel sector and the company is in the process of making another major acquisition in the State.
"Park Hotel Adelaide marks a significant milestone for Park Hotel Group and if approved, will inject new job opportunities and investment into South Australia," Mr Chia said.
"LGB Australia has employed a team of consultants ranging from structural engineers, service engineers, architects, quantity surveyors and construction consultants. We estimate about 200 workers and 40 consultants would be required during the construction phase.
"LGB Australia will continue to identify new investment and development opportunities in South Australia. We will bring a group of international investors to South Australia in September to view our projects," Mr Chia said.
The Park Hotel Group Chief Executive Officer Allen Law said there will be additional job opportunities if the new hotel opens its doors.
"We have been looking to expand into Australia for a while and this collaboration presents an exciting opportunity for us to do just that," Mr Law said.
"Adelaide has experienced a massive expansion in its convention facilities, the medical precinct, Riverbank and Adelaide Oval developments. Increased flight connectivity, a strong events calendar and continued growth of the Asian markets, will also drive record visitor numbers. We are extremely optimistic about Adelaide's tourism prospects.
"The Park Hotel Group is based in Singapore with 3,600 rooms across the Asia Pacific region. It will use its extensive hotel network to promote tourism to South Australia."
The proposal has started its pre-lodgement process with the Development Assessment Commission and will be assessed by the Government Architect Design Review Panel.
If approved, construction is expected to begin in 2017 and be completed in 2018.
Mr Hamilton-Smith said there is significant potential for continued investment in South Australia, which will generate employment opportunities and broaden international networks.
"The South Australia-South East Asia Engagement Strategy is focused on identifying opportunities in attracting direct investments into South Australia.
"This trade mission to Singapore, Malaysia and Thailand will strengthen South Australia's government links and help facilitate business trade and investment opportunities.
"The State Government has also committed $15 million over the next two years for the creation of an Investment Attraction Fund.
"An investment attraction agency has been established and will be chaired by banking executive Rob Chapman who is in South East Asia to speak with prospective investors."