Work starts on Adelaide’s largest construction project
Hines Property has today announced the start of work and the awarding of the building contract to Baulderstone Hornibrook of its $150 million 20 Hindmarsh Square development. The project will comprise a 15-level, 89-apartment tower and a 16-level, 308-room hotel to be operated by the InterContinental Hotels Group as Crowne Plaza Adelaide. Both towers will be constructed simultaneously.
Hines Property Director James Hines said over 60% of the apartment tower has already been sold, and the hotel opening will be timely to capture the benefits of Adelaide's shortage of quality hotel accommodation. "Hotel revenues per available room in Adelaide have increased by over 20% in the last two years, exceeding most analyst forecasts. This performance is the result of a lack of new supply and renewed economic conditions largely driven by Adelaide's burgeoning mining and defence industries," Mr Hines said. "The influx of new business and investment in South Australia is set to increase substantially in the near term," he said.
In line with Hines Property's ESD practices, 20 Hindmarsh Square will be one of the 'greenest' hotel and residential complexes in the country, with rainwater capture and reuse, careful selection of water and energy efficient fixtures and fittings, and energy efficient air-conditioning systems. "This will mean reduced running costs for the hotel, giving the asset a distinct advantage over the older hotel properties it will compete with in Adelaide," Mr Hines said.
Mr Hines said demolition works on the site were already finished and construction was expected to be completed by early 2010. "Together with securing InterContinental Hotels Group to manage the hotel and the significant level of apartment presales, the letting of the construction contract is the commencement of an exciting phase for Hines Property," said Mr Hines. Derek Hough, General Manager of Baulderstone Hornibrook in South Australia, commented that 20 Hindmarsh Square is a landmark development for Adelaide. "We are pleased to be working with Hines Property on this exciting project," Mr Hough said.
Hindmarsh Square has become the centre of development activity in the city, with more than $400 million worth of new office and apartment projects planned or underway, and over $100 million of projects complete in the last five years. Hines Property has played a major role in the transformation of this part of the city with its $70 million, 19-level mixed use 'environmentally advanced' office and residential project, Conservatory, currently under construction.