When complete, the 1.7ha site at 237 Grote Street, Adelaide, will bring together a destinational mixed-use precinct spanning 750+ residences with six-star amenity across four towers, a five-star hotel, over 15,000sqm in retail and commercial space, an entertainment and recreation component and public plaza, with an estimated end value of $1.25billion – offering locals and tourists something not currently available in Adelaide.

In keeping with its industry-leading Greener by Gurner initiative, GURNERTM’s first project in Adelaide will be carbon-neutral.

It will also become the headquarters of Kennards in South Australia, complete with cutting-edge technological inclusions, retail stores, self-storage units, as well as enterprise and coworking spaces. Part of the 1.7ha site is a 24,000sqm six-level building originally constructed for Australia Post to sort and distribute mail near the CBD; when technological changes saw letter volumes reduce and the building eventually become obsolete, Australia Post put the property on the market.

The strategic partnership between the two groups – the first of its kind in the self-storage space – will see Kennards repurpose the former Australia Post building into next-generation storage facility, which will be seamlessly integrated into the master plan, and GURNERTM will bring its vision to life for an iconic mixed-use, residential, self-storage and commercial office super-site across 11,000sqm of prime development land.

The announcement of the new project is a timely one for Adelaide – which was named the third-most liveable city in the world according to The Economist Intelligence Unit’s Global Liveability Index for 2021 – as CBD living, luxury property and amenity-rich projects continue to be favoured by owner- occupiers and downsizers alike.

While there is no permit in place on the site – which has three street frontages on Grote Street, Gouger Street and Blenheim Street – current zoning and planning controls allow GURNERTM and Kennards Self Storage to proceed with a transformative mixed-use development.

A design competition is currently underway to appoint a lead architect, and the development application is expected to be lodged in late 2022.

GURNERTM CEO Tim Gurner told The ASEAN Developer, "This is an incredible site, and we could not be happier to be partnering with such iconic Australian success stories in Kennards and Sam, to bring a shared vision for the development to life – we’ll be creating something very ambitious, something that hasn’t been done before in this sector.

“The main focus of this city-changing site will be a transformative public realm, that will become a key attraction for Adelaide CBD.

“As we do with all our projects, we’ll be prioritising leading amenities for residents – they’ll have access to entertainment, retail and co-working spaces, as well as our signature Private Club offering, in a destination that puts them on the doorstep of everything Australia’s most liveable city has to offer.

“We certainly see Adelaide as one of Australia’s cultural epicentres – it’s an amazing city and we are looking forward to delivering something special there, and continuing to push the boundaries in not just the residential space but across service, amenity, hospitality and lifestyle.

“This is a very significant transaction in terms of scale and value for the Adelaide market, which reflects the confidence we have in the market and its fundamentals – we have been waiting for the right time to enter South Australia, and we think that time is now.

“We are always inspired by our amazing partners – the work of Sam and his family over the generations is simply incredible, and we look forward to this being the first of many great partnerships together.

Sam Kennard, CEO of Kennards Self Storage, said “When we originally purchased the site in 2020, we had seven existing locations in Adelaide but had been searching for the right CBD location for a number of years.

“Originally we had identified an opportunity to re-purpose the existing building into self-storage and planned to subdivide and sell the surplus land, but COVID allowed us the time to take pause and reflect, and we soon realised the site had the potential to become a city-shaping project.

“We approached GURNERTM as part of a small EOI process and their vision for the site absolutely blew us away – there is no doubt their bold proposal will create a new landmark for Adelaide’s CBD.

“We are delighted to be partnering with such a forward-thinking developer with whom we can collaborate and create a unique precinct for Adelaide and a first for our industry at the same time,” he said.