ICD Property to build 35-storey tower as part of $400 million Central Market Arcade redevelopment

City of Adelaide has appointed ICD Property as partner for the $400 million Central Market Arcade redevelopment.

Council held a two year long global expressions of interest campaign before appointing the Melbourne-based builder.

The Adelaide CBD project will include a 35-storey tower with retail and residential components.

Two office buildings, of 13 and 16 levels, will also be developed.

A red brick facade will be developed next to the historic Adelaide Central Market.

An updated retail area with a central hall, rooftop garden, childcare centre and hotel are also earmarked.

The project will also create access to Victoria Square, Grote Street and Gouger Street.

A red brick façade will be constructed as part of the Central Market Arcade works.

ICD is set to begin construction in 2021.

The project will provide better pedestrian access to Victoria Square, Grote Street and Gouger Street.

Upon completion it is anticipated that the retail component will be active 18 hours a day, seven days a week.

Wine bars, and a craft beer maker, form an important part of the tenancy mix, council said, to capture Adelaide’s night night-time economy;

The development will be the first for the Central Market Arcade site since the 1960s – council saying its research found the existing centre “represents an under-utilisation of the land’s potential, characterised by a dated appearance, ageing infrastructure, inactive frontages and a lack of connections through the site”.

The property is adjacent to the Adelaide Central Market.

Central Market Arcade to become a destination

Following the $400 million development of the site, council expects an additional million visitors per year to Central Market Arcade.

At present, about nine million people a year visit, it said.

“This council-led project will create a food and wine destination of international repute, building on the Central Market’s importance as a South Australian icon” Lord Mayor Sandy Verschoor said.

ICD expects to start work on the redevelopment next year.

ICD Property will itself joint venture partner with a group for the redevelopment: global investor, Nanshan Singapore, a diversified conglomerate which has developed in the USA, Italy and Indonesia.

“The project will seek to celebrate the rich cultural tapestry of the district and the heritage buildings, places and cultural attachment that have been created,” ICD managing director Matt Khoo said.

In a statement, the council said it will retain ownership and control of 6,000 sqm of retail space including market activities, specialty retail, supermarket, basement loading and 260 public car parking spaces.

The project value has been estimated at $400 million.

ICD Property will own upper story complementary retail, the ‘A’ grade office tower, hotel (with 249 rooms), childcare centre, public podium and residential apartments (210 of them, of which 15 per cent must be delivered as affordable housing).

ICD will also retain the car parking associated with the apartments.

“The City of Adelaide will work closely with existing traders in Adelaide Central Market while construction takes place at the Market Arcade site,” the statement said. “There will be a return of car parking and additional storage facilities for traders”.

ICD will now create detailed designs with Woods Bagot, before seeking development approval.

The proposed 35-level tower and one of the two offices, behind.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco