[U/C] 88 O'Connell Street | 63m | 13, 13 and 15 Levels | Mixed Use

[how_good_is_he]

Ben are you for real comparing this project with the Uno apartments!! Firstly Uno is actually bankrolled by the Commonwealth Govt [ie you and I as taxpayers]. If the govt wasnt involved it would add maybe 2-3 years to this development! Your comparison actually highlights my point that the finance [ie money] is the key. Why don't you compare the Spire or many others recent large developments [which haven't had significant pre-commitment] and which aren't govt funded and see how they have faired? Do you understand the bank/s have to put up say $150million [ie 2/3rds] for it to get built??? And why would the bank or even the developer want to start unless there was [significant] pre-commitment? Do you think they should just risk going broke because you want them to start?
I also note that even with Uno they have had to go to market and achieve significant pre-sales. Further Unos construction price per sqm would probably be 1/4 of Makris construction cost sqm and therefore the final sale price/leasing rate would be a lot higher/harder to achieve.
Regardless of what you think of Makris' plans etc if you want to try to do something exceptional [whether it is or not you can argue about at the end of construction] it will take far longer.
Further you cant compare the work involved in trying to attract say Versace, Gucci, Hermes, Louis Vuitton etc to Adelaide [which no-one else has been able to do yet] compared to doing a deal with cheap-as-chips or building tilt-up dog boxes.
Its easy to just knock Makris' developments [or any others - rightly or wrongly] but what I would like is the same critics to actually be constructive and show me what they would have wanted built there [ie name some examples] so we can judge the alternative and what the critics think is in better taste....

[Ben]

Ben are you for real comparing this project with the Uno apartments!! Firstly Uno is actually bankrolled by the Commonwealth Govt [ie you and I as taxpayers]. If the govt wasnt involved it would add maybe 2-3 years to this development! Your comparison actually highlights my point that the finance [ie money] is the key. Why don't you compare the Spire or many others recent large developments [which haven't had significant pre-commitment] and which aren't govt funded and see how they have faired? Do you understand the bank/s have to put up say $150million [ie 2/3rds] for it to get built??? And why would the bank or even the developer want to start unless there was [significant] pre-commitment? Do you think they should just risk going broke because you want them to start?
I also note that even with Uno they have had to go to market and achieve significant pre-sales. Further Unos construction price per sqm would probably be 1/4 of Makris construction cost sqm and therefore the final sale price/leasing rate would be a lot higher/harder to achieve.
Regardless of what you think of Makris' plans etc if you want to try to do something exceptional [whether it is or not you can argue about at the end of construction] it will take far longer.
Further you cant compare the work involved in trying to attract say Versace, Gucci, Hermes, Louis Vuitton etc to Adelaide [which no-one else has been able to do yet] compared to doing a deal with cheap-as-chips or building tilt-up dog boxes.
Its easy to just knock Makris' developments [or any others - rightly or wrongly] but what I would like is the same critics to actually be constructive and show me what they would have wanted built there [ie name some examples] so we can judge the alternative and what the critics think is in better taste....

My point is why wasn't the marketing started to attract presales 5 or 10 years ago. If that had indeed happened the precommitment and sales targets would have been achieved to allow this to be built. It has simply stayed stagnant. I appreciate it takes time for a development to move from planning to sales to development, however the simple fact is it has taken to long.

I dare say this building is cheap as chips which is why it is taking so long to secure such tenants. Also you will not find these high profile stores in just suburbs even if it is only 5 minutes from the city. They are all based in CBD's because thats's where the Hotels and tourists are. No tourist will travel to north Adelaide to shop because there is nothing else there. The tourists buy on impulse while walking past etc. This is another reason why I find it hard to believe he will attract many if any of the above retailers. They are earmarked to City Central GPO building and CC8 needs to be completed for Australia Post to move into before the retail component can occur.

You want an example of what should have been built. try EnEx 100 in Perth or Melbourne Central in Melbourne this is what a CBD shopping malls should be like not city cross.

You seem all to happy to accept mediocre all in the hope that something is happening behind the scenes.... how many years do we hang onto this hope? 20? 25? 30?

http://www.enex100.com.au/

[Prince George]

Further you cant compare the work involved in trying to attract say Versace, Gucci, Hermes, Louis Vuitton etc to Adelaide [which no-one else has been able to do yet] compared to doing a deal with cheap-as-chips or building tilt-up dog boxes.

And is that who we're going to see here? Do you suppose that I will finally have Henry Poole, Turnbull & Asser, John Lobb, and Geo F. Trumper all together in one place? I do hope so, because sometimes the walk from Saville Row to Jermyn Street can be such a bore.

[Ben]

Its naive to blame the developer for a project not "starting". The amount of work involved prior to construction can take longer than the actual construction. All the final plans etc have to be done now in exacting detail [and tendered/costed] so it can being offered to the buyers/retail tenants.
Further, this project [or any other] won't start until the banks lend the money, the banks won't lend the money until there is significant pre-commitment [both for the retail & apartments] and for this to happen enough people have to actually put down THEIR money.
If you are really concerned about this project not starting/being too slow, the thing to do is not whinge but actually invest in it when the marketing starts [which I guarantee the critics won't]. I think that some fail to understand that it will be up to the people [ie YOU] when this thing gets built, not the developer!

Theo Samaras in Regards to a development announced last month:

In another positive for the Adelaide construction market, Mr Samaras says he will forge ahead with the green-star-rated development without tenant precommitment.

"I want to start the office tower next year in the first quarter, and I am not necessarily relying on pre-commitment for it to happen," Mr Samaras said.

[Will]

Its naive to blame the developer for a project not "starting". The amount of work involved prior to construction can take longer than the actual construction. All the final plans etc have to be done now in exacting detail [and tendered/costed] so it can being offered to the buyers/retail tenants.
Further, this project [or any other] won't start until the banks lend the money, the banks won't lend the money until there is significant pre-commitment [both for the retail & apartments] and for this to happen enough people have to actually put down THEIR money.
If you are really concerned about this project not starting/being too slow, the thing to do is not whinge but actually invest in it when the marketing starts [which I guarantee the critics won't]. I think that some fail to understand that it will be up to the people [ie YOU] when this thing gets built, not the developer!

Theo Samaras in Regards to a development announced last month:

In another positive for the Adelaide construction market, Mr Samaras says he will forge ahead with the green-star-rated development without tenant precommitment.

"I want to start the office tower next year in the first quarter, and I am not necessarily relying on pre-commitment for it to happen," Mr Samaras said.

To be fair, the example that you cite is more an exception, rather than the rule.

And being fair to Makris, the reason why this wasn't marketed 10 years ago, was because the current plans were only granted approval in 2008, when the GFC kicked in.

[how_good_is_he]

Exactly! How can you go to market 5-10 years ago if it was only approved 1.5years ago?

[Omicron]

Further you cant compare the work involved in trying to attract say Versace, Gucci, Hermes, Louis Vuitton etc to Adelaide [which no-one else has been able to do yet] compared to doing a deal with cheap-as-chips or building tilt-up dog boxes.

And is that who we're going to see here? Do you suppose that I will finally have Henry Poole, Turnbull & Asser, John Lobb, and Geo F. Trumper all together in one place? I do hope so, because sometimes the walk from Saville Row to Jermyn Street can be such a bore.

Ahaha!

[Burger]

Not sure how reliable the information is but I was recently told by an East Coast colleague that Makris is offering the site around to some big insto's. Not saying they have been approached but someone like Colonial could certainly make it work with their expertise and relationships with luxe brands, though may be too small for them. (aside - could be an interesting battle of the brands between here and Burnside!)

As I said, just a rumour at this stage but will keep my ears open...

[how_good_is_he]

My guess is that he would never sell the retail/commercial but the residential could be left to others with more experience & minimise risk, which would make the project a lot more appealing to the banks. If say Mirvac, Mulitplex etc came in for the residential it would give the project an instant start.

[skyliner]

Anyone know any further developments here?

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Will]

Anyone know any further developments here?

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

All the buildings on the site have now being demolished.

[skyliner]

Thaks mate - sorry to annoy people with such requests - if I was there I'd be 'on site' myself. VERY frustrating.

Any sign further than demolition evident?

ADELAIDE - TOWARDS A GREATER CITY SKYLINER

[jk1237]

Thaks mate - sorry to annoy people with such requests - if I was there I'd be 'on site' myself. VERY frustrating.

Any sign further than demolition evident?

ADELAIDE - TOWARDS A GREATER CITY SKYLINER

nup, demolition is something Adelaide does well and is speedy on, its the construction of the new building that we eagerly await. Nothing yet that I could see last Sunday. I really hope I dont have say that this time next year

[Ben]

I noticed on Saturday they have changed the signage on site and are asking for registrations of interest now.

[skyliner]

Good. I for one am impressed with the archiectural style - rather unique for Adelaide. The only other bldg of like size and style that comes to mind is the old ETSA bldg. (Was where Rundle car Pk and the Lantern now exist). This bldg will strongly add an impt. urban/inner suburban CBD ambience.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE