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Adelaide land deal falls through as developer goes AWOL

AAP logoAAP 1/11/2016

A controversial Adelaide land deal has fallen through with a developer missing a payment deadline, but South Australian Premier Jay Weatherill says nothing has been lost with the government still "proud owners of some swamp".

In 2013, the 400 hectares at suburban Gillman were sold to Adelaide Capital Partners without going to tender and at a price many considered to be well under the market rate.

The company had until Tuesday to pay $45 million for the first 150 hectares but the state government says it failed to do so, meaning the land will be put back on the market.

The land was proposed for an industrial park that would create 6000 jobs, with ACP coming to the government with its development plans.

Mr Weatherill said the government had tried to give the ambitious project every chance of success.

"Remember what we're talking about here, it's swamp land that has been there forever," he said.

"Nothing has been lost. We still have this land."

The controversial 100 million dollar Gillman land sale has fallen through after the developer failed to make its first payment. © Ten News The controversial 100 million dollar Gillman land sale has fallen through after the developer failed to make its first payment. The Gillman deal has caused the government considerable angst with SA's Independent Commissioner Against Corruption finding last year that two Renewal SA officials engaged in conduct that amounted to maladministration.

Commissioner Bruce Lander said the officials should have advised Treasurer Tom Koutsantonis to consider an open tender process and that a proper valuation should have been obtained.

But Mr Weatherill and Mr Koutsantonis were cleared of any wrongdoing.

Opposition Leader Steven Marshall said the deal's failure was a damning indictment of the Labor government.

"Yet again Jay Weatherill has let down South Australians by failing to deliver on a promise," Mr Marshall said.

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