SOUTHGATE Shopping Centre at Sylvania is set for a major redevelopment in the future after the owner's purchase of the adjoining Crest Hotel for $19.2 million.
Expansion could include extra levels on the existing shopping centre after the building height was increased from 13 metres to 16 metres in the Sutherland Shire draft local environmental plan.
Southgate's owner, the super fund ISPT, increased its redevelopment options by acquiring the hotel.
The adjoining fitness centre, which was originally a theatre complex, and McDonald's restaurant are owned by others.
ISPT general manager — retail services Sam Curry said redevelopment could be "a number of years away".
"The [hotel acquisition] was an opportunity to acquire land so at some point down the track we can look at expansion," he said.
"It is early days and we have no firmed-up plans.
"We will look at what the centre and the community needs, get planners on board and discuss with the council what can and can't be done.
"At the moment, the centre is trading pretty well."
Mr Curry said the hotel enjoyed an "excellent" position fronting the Princes Highway "which gives us better visibility from the main road".
It would remain "an operating pub" with a new operator to be brought in.
Mr Curry said some small businesses on the hotel property would also continue to trade.
ISPT unsuccessfully applied to have the building height of the shopping centre raised to 25 metres in the 2013 draft LEP. It sought the same height controls as other commercial zones in the shire.
A Sutherland Shire Council spokeswoman said its response was to consider the present zoning, effects on homes in Melrose Avenue and Formosa Street and the site's "unique use as a large internalised shopping centre in single ownership".
‘‘Other centres with a common zoning B3-commercial core have a greater range of commercial, retail and community functions,’’ she said.
In its response to draft LEP2, the council said Southgate’s present building height limit set in the 2006 LEP would allow an extra level.
It recommended the height map be amended to allow 16 metres for the shopping centre, but not the whole site, given the potential overshadowing of adjacent homes.
The independent review of the draft LEP received an oral submission requesting an increase in building height to 25 metres but did not provide a recommendation.
'BUT NOT TOO BIG PLEASE’
Susan Ambrose, of Heathcote East (pictured above), hopes Southgate does not become too big. ‘‘I like the present size,’’ she said. ‘‘It’s easy to get in and out of and you don’t feel you are locked in for the day. We have got [Westfield] Miranda for a big centre and it is getting even bigger.’’
Ms Ambrose said the layout of the Southgate site could be improved.
‘‘It’s a bit disjointed at present, particularly with the car parking, and it’s not easy with kids.’’
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