February 2026 | Media Releases+
Construction begins on Festival Tower Two
Adelaide’s skyline is set to be transformed as construction work begins on Walker Corporation’s Festival Tower Two at Festival Plaza to become the city’s tallest commercial building.
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Nine News Adelaide
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A 54-metre crane has been erected to begin construction on the 160 metre, 38-storey tower alongside the already constructed 29-storey Festival Tower One.
Together, the Festival Towers will activate the Riverbank Precinct as a hub for business, entertainment, culture and community.
“Festival Tower Two is a transformative development for South Australia. Not only will it change our skyline as one of our city’s first skyscrapers, but it will be emblematic of the incredible momentum and buzz that surrounds the city.”
SA Premier Peter Malinauskas
A 54-metre crane has been erected to begin construction on the 160 metre, 38-storey tower alongside the already constructed 29-storey Festival Tower One.
“Today marks an exciting milestone in Adelaide’s evolution,” Minister Nick Champion said.
“The crane now standing at Festival Plaza is more than just construction equipment. It is a symbol of confidence in Adelaide's future and our city's ability to attract world-class investment.”
“Over the next three years, hundreds of South Australian workers will be employed on this site. Upon completion, Festival Tower Two will support thousands of CBD workers and continue to generate significant economic activity."
“This is the outcome of government and industry working together toward a shared vision for our city.”
Together, the Festival Towers will activate the Riverbank Precinct as a hub for business, entertainment, culture and community.
An artist impression of the completed festival Towers
Festival Tower Two was formally announced in March last year following completion of commercial negotiations. Walker Corporation received unconditional approval to proceed with construction in December 2025.
“Festival Tower Two is a major investment in Adelaide’s long term economic strength which will complete the original vision to transform this central city square, into a vibrant commercial and cultural heart, while respecting and promoting South Australia’s rich heritage,” Walker CEO and Managing Director David Gallant said.
"Festival Tower One has been an incredible success story in just under two years of operation, already creating thousands of new jobs and enabling young South Australians to attain high quality university education in the heart of the CBD."
"Festival Tower Two will provide the jobs of the future for those graduates and many more South Australians and that is all down to the vision and ambition of this Premier and his Government, who have put their trust in our placemaking experience to deliver a tower that matches the scale and ambition of this State."
An artist impression of the retail plaza at Festival Tower Two
Construction will require 36,000 cubic metres of concrete, enough to fill more than 14 Olympic-sized swimming pools, alongside 4,500 tonnes of reinforcing steel, 385 tonnes of structural steel and 135,000 cubic metres of formwork, equivalent to around eight Adelaide Ovals.The development is projected to generate more than $1.3 billion in economic activity each year.
Walker Corporation secured a Development Agreement with the State Government in 2016 to deliver a car park, the surrounding civic spaces, office building and a retail building development at Festival Plaza. Under an agreement backed by the former Marshall Liberal Government, this was to be a three-storey retail building that would have been the height and width of Parliament House, blocking views from the north.
Now, in partnership with the Malinauskas Labor Government and as approved by the State’s independent planning body, Walker Corporation is delivering Festival Tower Two rather than the previously planned building that would have completely obscured the views of Parliament.
Festival Tower Two is expected to be complete in late 2028, completing a development of the Festival Plaza Precinct, a partnership between Renewal SA, SkyCity Adelaide and Walker Corporation.
