Chinese-backed developer ICD Property is moving forward with plans for a $400 million development in central Adelaide, despite the withdrawal of one of its central investors.
The Melbourne-based developer announced in December that global investors Nanshan Singapore had joined its revamp of the Central Market Arcade, alongside development firm Sinclair Brook and Woods Bagot—enlisted to oversee the project’s design.
ICD and Woods Bagot lodged detailed design and planning work to council last week, aiming to enhance the existing structure by restoring and protecting the market’s heritage items and building complementary new assets.
The development includes 11,200sq m of retail space, a central hall, public rooftop, child care centre, and a tower with 5,000sq m of commercial space.
The project will also feature a 38-storey tower containing a 249-room hotel and up to 210 residential apartments, with 15 per cent set aside for affordable housing.
ICD Property Managing Director Matt Khoo confirmed with The Urban Developer that Nanshan Singapore, a subsidiary of the Nanshan Group, had withdrawn its involvement in the Central Market Arcade redevelopment.
“This will not impact the project’s future and we are already in conversations with other potential investors to fulfil these minority investment commitments.”
“If necessary, ICD Property will fulfil this commitment ourselves,” Khoo said.
It is understood Nanshan Singapore’s decision to exit the project—in which it held a 10 per cent stake—followed negative public commentary about the conglomerate’s alleged links to the Chinese government.
Khoo said the redevelopment remained on schedule, and when complete would breathe new life into the precinct.
“ICD is fully equipped and able to complete the Central Market Arcade Redevelopment in accordance with our obligations as set out under the Project Delivery Agreement entered into with the City of Adelaide,” Khoo said.
“We look forward to our ongoing partnership and positive collaboration with the City of Adelaide and wider project team to deliver this exciting project for Adelaide.”
The City of Adelaide will retain ownership of the project’s retail space—including market activities, specialty retail, supermarket, and 260 public car parking spaces, while ICD will control the A-grade office tower, hotel, residential apartments and childcare.
The market will continue to operate during the three-year construction period, with work touted to break ground in 2021.