Sensational-Adelaide.com

loud wrote:I heard a rumour (yes, another rumour) that the size of this building WILL be reduced...

Pikey wrote:Hey Ben,

Just wondering if you canform a rumour I heard that site works should recommence either this week or next. Just wondering if you'd seen any action on site at all?

rogue wrote:Is anyone able to scan the article from page 65 in today's paper?

Hills' $90m headquarters waits on Walker signing
RUSSELL EMMERSON
The Advertiser, 27 September 2008

WORK has stopped on Hills Industries' $90 million headquarters development while due diligence with joint venture partner Walker Corporation is finalised.

Hills has been searching for a replacement developer since listed industrial company Goodman International pulled out of the project in July because of the changing economic conditions.

While Hills managing director Graham Twartz would not name the potential partner yesterday, Walker Corporation state project manager Humphrey Whitaker said the Sydney-based developer was expecting to take part in the venture.

``We are in negotiations and are still finalising things in the due diligence,'' he said.

Walker Corporation is undertaking the $2 billion Buckland Park residential development near Virginia and a one million sq m industrial estate in Salisbury, both in partnership with local developer Day Corp.

It is understood that Day Corp will not be a part of the Hills deal.

Mr Twartz confirmed work on the King William St project had stopped until the deal had been finalised.

``Things always take longer than you would like,'' he said.

``There were some decisions around the design so the agreement was we would stop.''

Mr Twartz said the delayed start would probably stall completion of the project, but said he didn't expect there would be a marked escalation in costs.

``There are holding costs but very little money has been spent, so there is no blow-out in costs,'' he said. ``We are still hoping to be there by our original date, by Christmas 2009. We might slip into 2010 but everything is under control.''

The original deal was brokered by former Hills managing director David Simmons last December, but Goodman pulled out three months after Mr Simmons retired in March.

Goodman has not yet spoken publicly about its reasons for leaving the project, although it is understood it did not believe the project met its viability hurdles in the current market.

Hills shares closed down 7c to $4.32.

Type: Development Application Received
Application Number: DA/37/2008/A
Lodgement Date: 26/09/2008
Location: Development Site, 413-427 King William Street, ADELAIDE SA 5000
Description: Vary previous authorisation to construction of a commercial (retail/office) building comprising 15 building levels plus roof plant room, four levels of basement car parking and ancillary landscaping - VARIATION - amended design.

Will409 wrote:Does this application go to the DAC or does it remain with the DAP since the original proposal was lodged before everything changed?

Type: Development Application Received
Application Number: DA/37/2008/A
Lodgement Date: 26/09/2008
Location: Development Site, 413-427 King William Street, ADELAIDE SA 5000
Description: Vary previous authorisation to construction of a commercial (retail/office) building comprising 15 building levels plus roof plant room, four levels of basement car parking and ancillary landscaping - VARIATION - amended design.