Adelaide’s skyline is set to be dramatically reshaped with the commencement of major construction on Festival Tower Two, a towering addition to the city’s burgeoning urban landscape. Standing at an impressive 160 metres, this 38-storey structure will officially claim the title of Adelaide’s first skyscraper, surpassing the general threshold of 150 metres. Developed by Walker Corporation with an investment of $800 million, the tower is strategically situated on state government-owned land within the revitalised Festival Plaza precinct, nestled between the historic Parliament House and the iconic Festival Theatre.
The ambitious project is expected to be a significant engine for job creation, with Premier Peter Malinauskas highlighting that the construction phase alone will generate over 1,300 employment opportunities. Once completed, the tower is projected to house up to 5,000 workers, injecting considerable economic activity into the heart of the city. Festival Tower Two will stand in close proximity to its predecessor, Festival Tower One, which opened its doors in 2024, and will rise above the subterranean Festival Car Park, a key piece of infrastructure completed in 2021.
Premier Malinauskas articulated a vision for the Festival Plaza precinct, stating, “The second tower at Festival Plaza will take what was a completely disused and rundown plaza and bring it to life with commerce, culture and, most importantly, people.” This sentiment underscores the government’s objective to transform a previously underutilised area into a vibrant hub of urban activity.
Airbridge Plans Scrapped
A much-discussed proposal for an airbridge connecting the new tower directly to Parliament House has been officially shelved. The initial concept envisioned a physical link that would allow for offices for Members of Parliament (MPs) or their staff within the new tower. However, Premier Malinauskas confirmed that after careful consideration of the associated costs and significant heritage implications, the decision was made not to proceed with the airbridge. “Considering the cost and the heritage implications, on balance we decided it wasn’t a good idea, so we didn’t approve it,” he stated.
This decision has not been without its critics. Robert Farnan, convenor of the Save Festival Plaza Alliance, voiced concerns that the scale of the development is inappropriate for the site. He suggested that the new tower would cast a permanent shadow over Parliament House and labelled the placement of an office building in the middle of a public plaza as “ridiculous.” Farnan alluded to a previously considered, smaller, three-storey building proposal as a more suitable alternative, warning that the current development could make Adelaide a “national joke.”
Timeline Adjustments and Lease Details
The completion date for Festival Tower Two has been pushed back by approximately one year. Planning Minister Nick Champion indicated that construction is now slated to continue until the end of 2028, rather than the originally anticipated completion next year. Mr Champion attributed this shift to the intricacies of the planning system, stating, “Obviously, as things pass through the planning system, you have to meet all of those gateways and that’s what’s probably affected the timeline in this instance.”
Details regarding the lease agreement between Walker Corporation and the state government for the land overlooking the River Torrens have been subject to speculation. While Mr Champion declined to disclose the exact financial terms, Premier Malinauskas assured the public that the state government is receiving substantially more than the “$1 a year” figure that had been reported. “What I can tell you is that the state government is making a lot more money than that – a lot more,” he emphasised.
Mixed Reactions to the Development
The construction of the second tower has elicited a range of opinions from political figures. Greens MP Robert Simms expressed strong disapproval, labelling the two towers as “a total waste of this prime real estate.” He views the development as a symbol of developer influence, lamenting, “we don’t just have one monstrosity towering over Parliament House, we’re now going to have two.”
In contrast, Opposition Leader Ashton Hurn offered a more favourable perspective, acknowledging that the second Festival Tower would “be good for the skyline.” She indicated that the Liberal Party does not oppose the project, stating, “There are many opponents to it, but we’re not one of them.”
The Unfulfilled Promise of Tarrkarri
The conversation around major development projects in Adelaide also touches upon the stalled plans for the Tarrkarri Aboriginal Arts and Cultural Centre. Four years ago, the former Liberal state government announced the commencement of construction for this centre, intended for the site of the old Royal Adelaide Hospital within the Adelaide Parklands.
However, the current Malinauskas government placed a halt on the project, initiating a review into significant cost blowouts. The findings of this review have yet to be publicly released. Premier Malinauskas explained the current impasse as a matter of funding, stating that additional sources of finance are required beyond the state government’s capacity. He even light-heartedly posed the question to Walker Corporation chief executive David Gallant about contributing “a few hundred million” towards the project during the tower announcement.
“The government’s policy position has not changed,” Mr Malinauskas reiterated. “We would love to see this happen, but we want to make sure it’s done properly and that requires additional sources of funding and those sources of funding have to come from outside the state government as well and we continue to look at those opportunities.”
Opposition Leader Ms Hurn criticised the current state of the Tarrkarri site, describing it as a “shameful dust bowl.” She indicated that the Liberal Party would unveil its plans for the site and the project prior to the state election on March 21, suggesting a potential revival of the initiative under their leadership.
