The centre was erected on land between Elder Park and Parliament House, and several historic buildings were demolished to make way for the new project.

Recently, the external plaza site is undergoing major redevelopment, started in 2016, but the theatre spaces have remained open.

When Don Dunstan became Premier he expanded the idea into a "Festival Centre", incorporating multiple smaller venues.

The appeal raised its target within a week, and was soon over-subscribed; the surplus was set aside to create a collection of artworks to grace the new building.

[13] Similarly, the Government Printing Office building, which was built circa 1880 between the baths and Parliament House, and later expanded, was also vacated and demolished.

[18] On 2 June 1973, Festival Theatre was officially opened by Prime Minister Gough Whitlam at a gala performance of Act Two, Scene 1 of Beethoven's opera Fidelio and Choral Symphony.

[21][22] Given the brief of camouflaging the new air-conditioning vent from the carpark below that would rise 10 metres (33 ft) from the concrete surface of the plaza, Hajek, arguing that the "real job" of sculpture was social, created a plan that integrated sculpture with architecture, creating a social space encompassing the whole Southern Plaza.

His plan consisted of "colourful, geometric painted surfaces and cement forms", and it was intended to include a fountain and other water features, extensive planting of vegetation, lighting and provision for sound, which would encourage people to interact with the "concrete garden".

After its opening in 1977, the plaza stirred debate and opinions were mixed, but its designs were seen to "consciously exemplify the new practices and relations embodied in the concept of environmental art".

[20] In the decades following the plaza’s opening, its painted surfaces, fountains and vegetation were not well-maintained, there were some problems with its concrete decking, it was not used for events, and, crucially, it did not attract incidental foot traffic to interact with its forms.

[19] In 1987, the fountain, unused for the prior three years owing to a leak, was demolished as part of a A$11 million upgrade of the plaza.

Although a pedestrian suspension bridge was built on its west side, the Plaza was essentially isolated as a result of this redevelopment.

In 2016 he was made Member of the Order of Australia, for service to the arts, community, and the tertiary sector (he also serves on Flinders University Council).

It also borrowed A$62 million from the South Australian Government Financing Authority for a maximum term of 10 years to fund Her Majesty’s Theatre redevelopment.