SA govt to occupy new GPO development

Government departments filling up offices in a new redevelopment of the General Post Office in Adelaide won't reduce the value of older assets, South Australian Premier Jay Weatherill says.

The Attorney-General's department will move across Victoria Square from the older State Administration Centre and occupy half of the 82-metre high $250 million project at the end of 2019.

"We always manage our asset base in a way that gives maximum value for the South Australian taxpayers," Mr Weatherill said.

On Wednesday, the premier turned the sod on the hi-tech, 20-storey GPO Exchange building which will create about 500 jobs.

It will include 19 floors of premium commercial offices spaces, retail precinct, car parking and a refurbishment of the heritage-listed Telephone Exchange Building.