The future of the Harris Scarfe tower looks precarious as major developer, the Gandel Group, has announced it is pulling back from the project.
The Melbourne-based developer is believed to have told stakeholders of its decision late last week.
Adelaide City Council partly owns the site with Alterman, which is said to be continuing with the retail part of the plans based on the pre-commitment of tenants.
The project is made up of four storeys of retail space totaling an estimated 24,000sqm and a further 14 storeys of commercial office space along with a rooftop car park. While tenants have been found for the retail space, the 25,000sqm of commercial office space remains unleased, sparking speculation over the tower’s viability.
The 19-storey, $150 million project has had numerous negotiations with Adelaide City Council over the conservation of several historic facades slated for demolition.
Lord Mayor Michael Harbison today speculated that council’s insistence on keeping the facades could be one of the reasons for the Gandel Group’s departure from the project.
The Gandel Group’s original development application included the demolition of the Harris Scarfe buildings and Francis Street buildings but preserved the Roger David façade. The Development Assessment Commission (DAC) approved this version, despite it being over regulation council height.
“It was over the height limit but the plan for the council allows buildings to go over the height within certain parameters,” principal planner Roger Freeman said.
In August, the Gandel Group requested a modification that included demolishing the Roger David building.
