King’s Head revival: multimillion-dollar deal secures Adelaide CBD site
After months of speculation over its future, Adelaide’s beleaguered King’s Head Hotel has officially welcomed a new owner with the site selling in a multimillion-dollar deal.
The high-profile 780sqm site, situated on the corner of King William and Sturt Streets, was sold by the Mortgagee in Possession to South Australian family enterprise AA Advancements, following a strong expression of interest campaign that drew attention from a wide range of prospective developers and investors.
The property reportedly sold in the vicinity of $7m.
RWC Adelaide Partners Jack Dyson, Harry Einarson and Managing Partner Oliver Totani managed the campaign, which concluded with the deal being transacted shortly after the EOI closed.
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“This property offered an extremely rare chance to secure a triple-fronted development site with direct tram line access in the tightly held southern pocket of Adelaide’s CBD,” Mr Dyson said.
“With its capital city zoning allowing for development up to 53 metres and an existing approval for a 16-storey serviced accommodation tower, the site presents outstanding potential for a major project in a location that is quickly growing in appeal.”
Previously home to the King’s Head Hotel, a once-bustling venue known for championing South Australian produce and beverages, the property has sat dormant for some time following a series of unsuccessful redevelopment attempts.
The former King’s Head Hotel could be developed into a 16-storey tower.
The hotel, which opened its doors on King William St in 1876, was purchased for $3.25 million in 2022 after taking a significant hit during the Covid pandemic.
Planning consent application for a 53-metre tall apartment block was submitted by Cucci Investments in 2022, with developers at the time expecting construction to begin in January 2024.
Signage on the venue slated the hotel’s opening for December 2024 – however, the site has remained untouched since the block behind the venue was demolished.
1834 Hotels Chief Executive Andrew Bullock previously said the company was contracted to manage the site, and that Mr Marcucci had previously confirmed to him the target was to open “late 2025 to early 2026”.
The $70 million plans included 117 “contemporary rooms”, a penthouse apartment, a shop at ground level and a hotel function area on the first floor.
However, the site was re-listed for sale earlier this year, with residential developer AA Advancements now looking to take the property to new highs.
“After several false starts in recent years, this sale marks a turning point for the site,” Mr Einarson said.
The hotel has been on the market for some time.
Located just a short walk from Victoria Square and Adelaide Central Market, the property sits in a thriving legal, government and hospitality precinct.
It is surrounded by key institutions including the Supreme, District, Magistrates and Youth Courts of South Australia, and is steps away from popular cafes, eateries and the Prohibition Liquor Co.
“The area is a vibrant mix of residential, commercial and lifestyle offerings,” Mr Totani said. “Combine that with immediate tram access and proximity to major city destinations, and you have one of the most well-connected and versatile development sites on the market.”
The sale reflects a broader trend of renewed interest in centrally located, developable parcels of land in Adelaide’s CBD, particularly as planning certainty and transport infrastructure continue to improve.
“There’s a noticeable shift back toward CBD development now that cost pressures are easing and interest rates have stabilised,” Mr Dyson said.
“Buyers are looking at sites like this with fresh eyes and renewed confidence.”
