A NEW 20-storey office tower has been confirmed for the historic Adelaide GPO site at Victoria Square after the South Australian Government committed to a 12-year lease for approximately half of the tower.
The Attorney-General's Department in Pirie Street will move to the new $235 million 24,500-square metre office tower at Precinct GPO from July 2019, once the new building is complete.
Leading Australian property funds management and investment group Charter Hall is expected to begin construction in the second quarter of next year, supporting an estimated 645 jobs during construction and fit-out of the Precinct.
The State Government's commitment to the lease will underpin this stage of the redevelopment of Precinct GPO, which also includes a proposal to refurbish the heritage Post Office and Telephone Exchange buildings.
Moving staff from 45 Pirie Street to the new 5 Star Green Star building is expected to reduce the department's footprint by an estimated 16 per cent and save the Government more than $25 million in ongoing costs over the 12-year lease, such as rent, cleaning and electricity.
Precinct GPO is located between King William Street and the Charter Hall-managed Australian Taxation Office building on Franklin Street.
Designed by Adelaide based firm Hassell, in conjunction with Fitzpatrick & Partners, the proposed Precinct GPO, upon completion, will deliver two technologically advanced towers of 20 and 15 storeys, which have been designed to respect the heritage-listed Telephone Exchange and GPO buildings.
Attorney-General and City of Adelaide Minister John Rau described the project as a win-win situation that will simultaneously modernise the working space for the Attorney-General's Department staff while saving taxpayers' money by reducing rental space.
"Development of a major office building in the CBD continues the trend in the City of Adelaide since the capital city Development Plan Amendment took effect," Mr Rau said.
"Between 2009-10 and 2013-14, approvals of private sector developments above $10 million totalled about $375 million a year. In 2014-15, approvals totalled $1.1 billion – and we are on track to exceed $1 billion again this financial year."