10.12.21

Jewel in the Crown of Kent Town as Landmark Development Delivers 192 New Apartments and Restoration of Heritage Listed Hotel

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Jewel in the crown of Kent Town as landmark development delivers 192 new apartments and restoration of heritage-listed hotel.

A landmark hotel site in Kent Town will be transformed in a significant $105 million development that will support surging demand for homeownership and rental housing in South Australia — with 192 new apartments to be built.

The opportunity to develop this prime location on the corner of North Terrace and DequettevilleTerrace — The Royal Hotel’s existing car park and adjoining land — and offer important housing solutions has been unlocked thanks to a partnership between the State Government and the private sector, with Flagship Group set to deliver the project.

The Royal at Kent Town project will incorporate construction of two buildings — one with 102 Build to Rent apartments and the other with 90 Build to Sell apartments.

In a South Australian first, the Build to Rent apartments will be a departure from Australia’s traditional development model by offering investment-class, long-term rental options to the open market and featuring a high level of internal amenity and services for working professionals—such as car sharing, electric vehicle charging and bike storage facilities.

The Royal project will also involve the restoration of the State Heritage-listed Royal Hotel.

Treasurer Rob Lucas welcomed the project — and Flagship Group’s significant private sector investment — as further evidence of Adelaide’s growing global reputation as one of the safest and best places to live, work and raise a family.
“This will be a jewel in the crown of Kent Town — an exciting development that will not only transform a landmark site on Adelaide’s city fringe but will be a key economic and jobs driver during the two-year construction period,” said Mr Lucas.

“I am advised the $105 million project will support 577 new jobs during construction, as well as provide welcome opportunity for South Australians to break into the housing and rental markets.”

The future development of the Royal Hotel site is one of the key outcomes of Renewal SA’s Affordable Housing Expression of Interest that was launched last year, which sought to identify the availability of development sites for affordable housing development within metropolitan Adelaide and generate development proposals from landowners, builders, developers and housing providers for affordable housing solutions.

“By driving investment through partnerships with the private sector, and supporting more South Australians into homeownership, The Royal project contributes to the State Government’s $550 million 10-year housing strategy,” said Renewal SA Chief Executive, Chris Menz.

“The result will be close to 200 new quality apartments for both the rental and homeowner markets in a highly desirable location on the fringe of the city and will drive more young, working professionals to live near the CBD where they can further leverage the great connections and infrastructure available to them.

“In addition, it will see the landmark Royal Hotel refurbished — bringing it back to its former glory and adding to the vibrancy of the new Kent Town precinct that will be created as part of this development.” 

State Government investment in the project will ensure 21% of the apartments will be offered as affordable housing — above the 15% obligation required under the Planning and Design Code.

Renewal SA support for the project means construction will commence immediately.

“Renewal SA has committed to purchase a percentage of affordable apartments in the event they have not sold to eligible purchasers by the time construction has finished, which means work can not only get underway immediately, but also that the two buildings can be built concurrently,” said Renewal SA Senior Director of Housing, Mike Philippou.

“With the Housing Industry of Australia forecasting a significant decline in construction commencements late next year, this is another project that will come at a vital time for South Australia and again demonstrates Renewal SA’s commitment to maintaining a strong pipeline of development opportunities.”

Flagship Group CEO and Director Mark Jarman said The Royal at Kent Town project represented a true partnership between the private and public sectors. 

“We are very pleased to be working in partnership with Renewal SA to deliver economic stimulus and housing activation as two important outcomes of this project,” he said. 

“As a result of this partnership, we also have an opportunity to bring an international Build to Rent operator to Adelaide which, in turn, will provide a broader accommodation offering in what will be a market first for Adelaide.

“The benefit to occupants will be outstanding service and amenity and it’s incredibly exciting to be planning the rejuvenation of what is a landmark corner and creating a new gateway to Kent Town.”

Flagship Group undertakes residential and commercial projects across Australia and has a proven record of delivering quality apartment living in South Australia, as demonstrated through its Kodo and Penny Place projects in Adelaide’s CBD.

“Our experiences with other projects are certainly informing our planning. However, our focus on design that enables and encourages the occupants to form their own micro-community is a fundamental and will remain a priority in delivering this new precinct,” Mr Jarman said.

The new apartments to be delivered as part of The Royal project will be built for the future, achieving a minimum 7.5-star energy rating and delivering 100% renewable energy to tenants. High quality shared amenity and green space will be a key feature of the new development which will also include car sharing, electric vehicle charging and bike storage facilities.

As the owner of the Royal Hotel at Kent Town, Flagship Group will determine the hotel’s future use in due course — rather than a full-service pub and gaming facility, its restoration will focus on a new space for a range of potential uses including commercial office and a light food and beverage offering.

Source: Renewal SA Media Release

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Flagship Property Holdings