Huge urban transformation proposed for Mount Gambier’s 19th-century flour mill site

Huge urban transformation proposed for Mount Gambier’s 19th-century flour mill site

Renders: Byleveld Architects

Mount Gambier has always existed at a crossroads of nature and industry. Volcanic lakes and sinkholes sit beside mills, warehouses and transport routes that once powered the Limestone Coast’s growth. Now, one of the city’s most prominent inner-city sites is poised for its biggest transformation in decades, a redevelopment that speaks to the shifting identity of regional South Australia.

On the corner of Sturt Street and Bay Road, the former Mitre 10 site (recognised for its remnants of a 19th-century flour mill) is the focus of a proposed mixed-use lifestyle and commercial precinct. The plan brings together office space, hospitality, short-stay accommodation, apartments, townhouses and a central public plaza, all stitched into a walkable, inner-city hub.

At the centre of the master plan is a four-storey apartment and hotel complex fronting Sturt Street, designed to strengthen Mount Gambier’s accommodation offering and support growing tourism and business travel. The building would house 82 dual-key serviced apartments, with a mix of studio, one-bedroom and two-bedroom suites, alongside accessible rooms to cater for a wide range of visitors and short-term residents.

The hotel component is supported by a suite of on-site facilities, including a reception and lobby, gym, conference and meeting rooms, business lounge, guest amenities and an alfresco barbecue area. Ground-floor spaces are intended to activate the street edge, contributing to a more engaged and people-focused precinct. A total of 65 on-site car parking spaces are planned, along with a dedicated drop-off zone on Sturt Street.

Beyond the hotel, the broader precinct introduces new residential density to the city centre. Eight contemporary two-storey townhouses are proposed along Heriot Street, while a separate four-storey apartment building is planned for Bay Road. Together, these elements aim to diversify Mount Gambier’s housing mix and encourage inner-city living alongside employment and hospitality uses.

The proposal also marks a significant moment for the site’s heritage narrative. While the remaining flour mill structure is proposed for demolition due to structural and safety constraints, the development outlines an intention to acknowledge the site’s industrial past through interpretive elements and the reuse of salvaged materials within the new build.

Economically, the project is positioned as a long-term investment in Mount Gambier’s future, expected to generate employment during construction and create ongoing jobs across hospitality, tourism, maintenance and commercial services once operational.

Public consultation on the proposal is currently underway, with submissions open until January 13, offering the community an opportunity to engage with a development that could redefine one of the city’s most visible inner-city corners.

Stage 1 lots of Gambier Lifestyle Estate are selling fast. To register interest, contact +61 429 476 594. Public consultation closes on January 13.

For more info on the plans, click here.

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