The $300 million New Mayfield project on Sturt Street, Adelaide, one of the largest hotel and apartment development the city has seen so far, looks like it may continue despite the collapse of Tagara Builders, who were a major shareholder in the project.
Since Tagara’s collapse about seven months ago, with debts of approximately $21.5 million, the New Mayfield project has been put on hold, waiting for receivers to assess their financial situation.
The good news for New Mayfield is that financiers, Forum Partners, is interested in taking over project management with the aim of restarting construction as soon as possible.
The first stage, New Mayfield House, comprising of 108 apartments across nine floors has already sold about 85 percent. The second stage, Granary House, which will offer a further 74 apartments has already raised a significant amount of interest. According to Forum Partners, the future looks good for staying on track for New Mayfield. Plans also include a 200 room Aloft hotel by Starwood. Starwood have also expressed their commitment to the project and are keen to get construction back on track. Andrew Taylor, spokesman for Starwood stated, “Starwood remains committed to the project…our hotel agreements remain on track.”
Development of Adelaide is a great thing for the economy. New Mayfield alone will create approximately 1,200 construction jobs during its development stage and another 130 jobs once it is complete.