[U/C] 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

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Algernon
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Algernon »

Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Patrick_27 »

Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
And even then, the only demand for hotel rooms are those of repatriation flights which is still government money? (Correct me if I'm wrong).

If the real estate market can pick itself up again, then there might be some hope that those projects financed but not yet U/C could be reimagined as apartment complexes, surely?
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by SRW »

Patrick_27 wrote:
Wed Sep 16, 2020 8:12 pm
Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
And even then, the only demand for hotel rooms are those of repatriation flights which is still government money? (Correct me if I'm wrong).

If the real estate market can pick itself up again, then there might be some hope that those projects financed but not yet U/C could be reimagined as apartment complexes, surely?
Repatriated citizens have to contribute $3,000 or more now to their hotel quarantine (which is part of why many remain overseas).

I'm not too optimistic about apartment towers getting off the ground over hotels -- developments of this size have proven frustratingly difficult, even when there were subsidies for stamp duty and council rates in place. Those subsidies have ended, and foreign ownership taxes have been introduced at the same time as China has limited capital flight. Add in the pandemic, the recession and the collapse of O/S migration (the only thing growing SA's population), and it's hard to see much of anything happening. The only reliable niche, aside student apartments and hotels, appears to be the low-rise but higher end apartments marketed to downsizing older (wealthy) buyers (like those on South Terrace). Solution? Imo, in addition to reintroducing stamp duty concessions, the state should bring housing into the infrastructure department, perhaps tasking it to a supercharged Renewal SA with targets for construction activity, affordability and density/TODs. The Commonwealth (if the Coalition could press pause on its disdain for poor people), should use its power of the purse to embark on a social housing and affordability investment (like NRAS from Rudd's GFS stimulus, that saw things like Ergo and Uno apartments built). I don't know about anyone else, but anecdotally from living in the city, homelessness has been the worst I've ever seen in the last few months. Something has to be done.
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by PeFe »

Patrick_27 wrote:
Wed Sep 16, 2020 8:12 pm

And even then, the only demand for hotel rooms are those of repatriation flights which is still government money? (Correct me if I'm wrong).

If the real estate market can pick itself up again, then there might be some hope that those projects financed but not yet U/C could be reimagined as apartment complexes, surely?
The demand for hotel rooms in Adelaide at the moment, yes, is primarily driven by overseas returnees. This will probably continue for at least 3 months and by then it will be summer and an opportunity for South Australia to capitalize on a captive domestic market.

I really hope that the opening titles of the NRL State of Origin 1 (Wednesday November 4) really do justice to the city and the new skyline, because this will be the easiest and quickest method of capturing the attention of millions of New South Welshpeople and Queenslanders....yep the eginning of a sports telecast is probably the best free publicity Adelaide is ever going to get in Sydney and Queensland.

And hopefully the international tourists start dribbling back in mid 2021....
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by phenom »

Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
Shouldn't your ire be directed at the Adelaide Oval hotel then given it was much later and also involved significantly more taxpayer money?
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by arki »

phenom wrote:
Wed Sep 16, 2020 10:08 pm
Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
Shouldn't your ire be directed at the Adelaide Oval hotel then given it was much later and also involved significantly more taxpayer money?
Unless I am mistaken I don't believe that this project received any government funding (unlike AO), rather a government guarantee that would be in favor of a third party financier. Given how tight credit had become in the past 5 years it's hard to see why anyone would have a problem with incentives that allow projects like this to get off the ground and create local work, without having to directly wear any repayment risk.

Now, AO on the other hand...
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Algernon »

phenom wrote:
Wed Sep 16, 2020 10:08 pm
Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
Shouldn't your ire be directed at the Adelaide Oval hotel then given it was much later and also involved significantly more taxpayer money?
I found both to be quite ridiculous that the government was funding an already overheated sector. There was never any indication that hotel developers were finding credit hard to come by. The SMA justified their request by saying a bank wouldn't fund a hotel on public land. My response to that is: don't build a hotel.
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Algernon »

arki wrote:
Wed Sep 16, 2020 11:36 pm
phenom wrote:
Wed Sep 16, 2020 10:08 pm
Algernon wrote:
Wed Sep 16, 2020 7:46 pm
Worth revisiting the funding issue regarding this tower. The state government for some inexplicable reason, offered favourable loan arrangements to get this over the line. The project is not yet completed and we are in the midst of a global crisis that will have a lasting impact on international travel well into the decade. Result? Money doled out to contribute to an oversupply of the market.

I've been speaking to a couple of people in the game, and they believe that hotel projects that didn't get off the ground yet have firmly missed the boat. Adelaide and Melbourne are fundamentally oversupplied for at least half of the decade, taking into account the huge future stock that is coming online for a growth projection that no longer exists.

Airlines themselves are saying that air travel can not return to normal for another 2-4 years at the earliest after this year flights were cut by up to 90%.
Shouldn't your ire be directed at the Adelaide Oval hotel then given it was much later and also involved significantly more taxpayer money?
Unless I am mistaken I don't believe that this project received any government funding (unlike AO), rather a government guarantee that would be in favor of a third party financier. Given how tight credit had become in the past 5 years it's hard to see why anyone would have a problem with incentives that allow projects like this to get off the ground and create local work, without having to directly wear any repayment risk.

Now, AO on the other hand...
Your recollection of the funding is the same as mine. In this case, the government picked a winner when there were already plenty of winners who could get finance without the government's help. This serves as a clear example of the pitfalls of the government acting in this way.
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by ChillyPhilly »

Work on the roof is starting.

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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Ho Really »

Ho Really wrote:
Fri Aug 14, 2020 12:39 am
Allkai wrote:
Thu Aug 13, 2020 7:49 pm
Believe the last concrete floor pour was done today.
So we only have the roof left on top on this slab which is above the eight floors of balconied apartments. That should be the final height.

Cheers
Allkai wrote:
Mon Aug 17, 2020 7:39 am
Pikey wrote:
Fri Aug 14, 2020 9:12 am
I've also heard that the final concrete deck is the roof, so theres no more superstructure to come
Hope you're right, because they've taken down the tower pump..... :lol: :lol:
As said before, this is the roof on top of the last slab. Pikey you forgot to add the roof.

Cheers
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Allkai »

Ho Really wrote:
Fri Sep 25, 2020 12:19 pm
Ho Really wrote:
Fri Aug 14, 2020 12:39 am
Allkai wrote:
Thu Aug 13, 2020 7:49 pm
Believe the last concrete floor pour was done today.
So we only have the roof left on top on this slab which is above the eight floors of balconied apartments. That should be the final height.

Cheers
Allkai wrote:
Mon Aug 17, 2020 7:39 am
Pikey wrote:
Fri Aug 14, 2020 9:12 am
I've also heard that the final concrete deck is the roof, so theres no more superstructure to come
Hope you're right, because they've taken down the tower pump..... :lol: :lol:
As said before, this is the roof on top of the last slab. Pikey you forgot to add the roof.

Cheers
Incorrect.
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by AndyWelsh »

From today:

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Image


Image

Image


Image


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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by Mpol03 »

This is how you glaze a building
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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by AndyWelsh »

Mpol03 wrote:This is how you glaze a building
The glazing really does reflect the sky quite nicely doesn’t it?


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[U/C] Re: 104-106 Currie Street | 117m | 33lvl | Sofitel Hotel

Post by EBG »

Some pictures from today 4/10/2020, west side and east side. Please click on pictures for bigger. Note framing for roof deck.
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20201004_west 2.jpg
20201004_east.jpg
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