More than 1000 new homes will be built on the site of the iconic former West End brewery in Adelaide's inner-west after its sale was finalised.
The state Labor government will spend $61.5 million on purchasing the 8.4 hectare site in Thebarton from Japan-owned brewing giant Lion.
It is planning a mixed-use development led by Renewal SA which will include at least 20 per cent affordable housing as well as commercial, hospitality and retail opportunities.
Beer was first brewed on the site in 1886 when the Torrenside Brewery was founded.
It underwent significant developments and several name changes over the years before West End closed its doors in 2021.
An archaeological dig on the site in 2022 revealed remnants of the homestead of Adelaide's original planner, Colonel William Light.
Premier Peter Malinauskas said historic structures on the site would be preserved and commercial opportunities would be balanced with community needs.
"The state government is serious about delivering more housing for South Australians and the former West End Brewery site represents an incredible opportunity to develop a prime site near the city," he said on Sunday.
Construction is set to start in 2025 with residents moving in by 2027.
Housing Minister Nick Champion said the government couldn't pass up the opportunity to buy the land, two kilometres from the CBD and seven km from the airport.
"It is almost unheard of to get an infill site of this scale in any capital city, so we seized the opportunity," he said.
"It is our intention to create a world-class precinct, one which is a catalyst for further local investment and drives housing affordability."
The government said the Riverbank Christmas lights display, held on the River Torrens and attracting 300,000 visitors each festive season, will continue throughout the works.
Lion said the sale had attracted strong interest with Renewal SA delivering the most commercially competitive offer.
"This site has been an iconic South Australian landmark since 1886 and today's announcement will ensure this legacy lives on," a spokesperson said.
