Pelligra | South Australian News

Immediate acceptance and flourishing activity at Lionsgate – the repurposed former Holden automotive factory at Elizabeth – signals an unexpected but welcome surge in business confidence for a region that is swiftly re-inventing itself and reviving its fortunes.

Designed to serve as a new industrial hub for Adelaide’s north, the 122ha Lionsgate site has been quickly populated with new businesses, proving itself to be an appropriate place for the timely expansion of existing companies and the foundation for new enterprises coming into South Australia.

Melbourne-based developer Pelligra Group bought the land from Holden during 2018, announcing that it would spend $250 million to redevelop and rename the site as Lionsgate Business Park. When the deal was settled in January, it signalled that SA carries significant potential for major investors from outside this state.

Ross Pelligra, chairman of Pelligra Group, says he was initially attracted by the size of the Lionsgate project – being one of the largest commercial land assets under one title in Australia.

A bird’s eye view of the former Holden site, now known as Lionsgate, at the end of 2017.

He is also thrilled that the site redevelopment is providing a springboard for new industrial opportunities to emerge in SA, at a critical time when industry is being revolutionised through rapid developments in technology and skills.

“Manufacturing is not like it was 20 years ago. The future is linked to the next level of urban renewal and advanced technologies,” says Ross.

“I believe that what is happening at Lionsgate represents the big way forward, providing a centre for up-skilled manufacturing and machinery – and the workforce in SA is ready for this leap forward.

“I truly believe that the leading edge SA business has is its people, and they are ready to embrace the next generation of manufacturing possibilities. The quick uptake of new manufacturing tenants at Lionsgate proves this.”

German battery giant sonnen and Business SA Exporter of the Year Levett Engineering are among the first wave of companies that have moved into the Lionsgate site, with the addition of more local and international manufacturing and technology tenants to be announced during March.

German battery giant sonnen’s Australian HQ is now based at Lionsgate, pictured is manufacturing manager Adam Williams. Photo by JKTP.

“Acceptance has been far beyond my expectation,” says David Reid, senior director with CBRE, the real estate agency responsible for signing up Lionsgate tenants.

“Industrial expansion on this scale represents a huge success for the local economy and the beginning of a new era for the northern suburbs. I think the new road network, with the completion of the Northern Connector, is showing that this location is very accessible, affordable and highly functional.”

Pelligra is a family company, headed by Ross and his brother Paul Pelligra (CEO), with more than six decades of experience in building and construction, and has made a solid commitment to support the rebuilding of manufacturing.

It’s a strong endorsement, as the world has seen many large industrial cities plunged into an economic tailspin after the closure of automotive manufacturing plants – Detroit in the US being the most shocking example. Ross views the departure of Holden from Elizabeth and the immediate opportunities presented by the Lionsgate site very differently.

“We came to Elizabeth with a positive attitude,” he says. “We didn’t want to just fill up this space with warehousing – we wanted to invest and be supportive of growth industries, and that is the emerging manufacturing industries that are embracing new technologies.”

The Elizabeth plant has transitioned from automotive manufacturing to an advanced manufacturing hub and business park.

Lionsgate will eventually combine a mixed-use retail precinct, café and museum, a central park named Lion Park, and a suite of precincts for engineering and construction, automotive companies, food, beverage and pharmaceuticals companies, and education, medical and recreational businesses.

“I don’t see us completing Lionsgate for at least another five to 10 years, because it will need to keep changing to meet 21st century manufacturing needs,” says Ross. “I can see that we will be pulling down some existing buildings to construct new buildings that incorporate innovative and intelligent elements in their design that best suit modern machinery and tenants.

“I talk about the future vision in this way because Pelligra will be here for the long haul. I believe the steps we have taken at Lionsgate will encourage other developers to look at opportunities in SA and adopt the same positive outlook.”

The Lionsgate development also signals the start of continuing investment in SA by the Pelligra Group, which is building a new complex to support Sanjeev Gupta’s Whyalla rejuvenation, including $45 million in a four-star ocean-view hotel.

Ross Pelligro says the company is only weeks away from finalising plans with council, then will start the selection process for architects and discussions with major hotel brands as operator tenants.

“I believe our willingness to invest will stimulate more investment to come into SA,” he adds.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services. Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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Adam Williams began his first full-time job as an apprentice toolmaker at Holden’s Elizabeth factory at the age of 19. Fast forward more than two decades and instead of cars coming off the production line it’s home battery systems.

After almost two decades working at Holden in various roles including leadership and management positions, Adam is still in the manufacturing game and is back under the same roof of the historic car-making site.

He now leads manufacturing operations at sonnen, a global home battery giant that has set up in the old Holden factory, now rebadged as Lionsgate Business Park and home to a small handful of other hi-tech manufacturing businesses.

“Ironically, my very first day at Holden was in this building that sonnen is setting up in,” says Adam, Brand South Australia’s latest I Choose SA ambassador for the trade and investment sector.

“Holden was a big part of my life, it taught me a lot and gave me a big insight into business, lead processes, safety and culture, which are all invaluable to manufacturing outside of auto.”

sonnen Australia’s manufacturing manager Adam Williams is Brand South Australia’s latest I Choose SA ambassador. Photo by JKTP.

The former manufacturing plant in Adelaide’s north has remained relatively disused since the last of Holden’s Elizabeth employees officially clocked off for the last time in November 2017, closing a near-century old chapter of Australian car-making history.

But investment by Melbourne-based Pelligra Group in the site has seen advanced manufacturing tenants including sonnen move in and establish presences here in SA.

Founded in Germany in 2010, sonnen produces the sonnenBatterie, a hi-tech energy system that stores and adjusts household usage of solar power.

All but two of the current 50 employees at sonnen’s Australian HQ are ex-Holden workers, and Adam says their auto-manufacturing skills have been transferrable into the new industry.

“When you’ve been doing something for so long, you never quite know if your skills will be relevant in a different industry, but I quickly found the philosophies and mentality around manufacturing and business were very transferrable,” he says.

“Our employees bring many skills in terms of understanding continuous improvement, they understand safety, advanced manufacturing and lean manufacturing.”

The first employees at sonnen’s Adelaide factory when it opened in 2018.

Adam left Holden in 2015, two years after General Motors officially announced it would eventually close the Elizabeth plant. He went on to spend three years at medical x-ray manufacturer and start-up Micro X based at the Tonsley Innovation District, another old car factory once home to Mitsubishi.

Upon hearing the news of sonnen’s plans to invest in SA, Adam researched the home battery maker and was drawn to the opportunity to be a part of a global company with high manufacturing volumes of about 10,000 home battery systems a year.

“To see this site reborn is really exciting, it’s going to be good for the state and good for the northern area of Adelaide,” he says.

“I love manufacturing and the philosophy behind it, what it brings to the state and the economy. Even though I left Holden, it’s an industry I want to stay in.”

The sonnenBatteries work by controlling how the battery stores and releases solar power into the home. The system can isolate itself from the electricity grid during blackouts, allowing a household to use its own stored energy until the power comes back on.

In Germany, thousands of homes are already connected to a ‘virtual power plant’ – a sonnenCommunity – where power is shared between households, resulting in no need for a conventional energy provider.

Minister for Energy and Mining Dan van Holst Pellekaan, left, and Premier Steven Marshall congratulate Sonnen CEO Christoph Ostermann at the sonnen launch in Adelaide in 2018.

“That is the goal here as well,” Adam says. “The more people we have on batteries, the less demand on the grid.”

sonnen was the first vendor to be accredited to SA’s Home Battery Scheme, a $100 million government initiative allowing households to install solar panels and a storage battery at a reduced cost.

But it wasn’t the scheme that motivated sonnen to set up in SA, says head of Asia Pacific and managing director of sonnen Australia Nathan Dunn, but rather the state’s advanced manufacturing capabilities.

“The ready pool of talent in SA will allow us to tap into future demand for sonnenBatteries and allow us to scale our operations within SA,” Nathan says.

“Another reason we have chosen to establish a presence in SA is the significant local ecosystem of suppliers that we can partner with to acquire components needed for the manufacturing of sonnenBatteries locally.

“Our goal is to ultimately increase the level of Australian sourced components to build a battery that is fully made in SA.”

Nathan says the goal is to produce sonnenBatteries to meet the needs of Australian customers before the company looks towards export opportunities into New Zealand, Japan, Thailand and Malaysia.

· Why energy giant sonnen chose to invest in SA

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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