Hotel Steyne: Apartments linked to iconic Manly pub get thumbs up from court

A Sydney property tycoon has won a court battle to allow luxury apartments, linked to an iconic beachfront pub, to go ahead.

The owner of Manly’s iconic Hotel Steyne Manly has won a court battle to build luxury apartments linked to the beachfront pub.

Sydney property tycoon Sam Arnaout, who bought the landmark hotel in 2019, can now push ahead with plans for the $16.2 million, four-storey “shop-top” block, next to the pub, facing the ocean on North Steyne.

It will replace a section of a 1910 building attached to the heritage-listed hotel that contained the street-level cafe and several hotel rooms, as well as the three-storey Tropikana bar and apartments next door.

An artist's impression of the planned four-storey shop-top apartment complex planned for 41-42 North Steyne at Manly. The owners of the Hotel Steyne will redevelop these properties after winning an appeal in the Land and Environment Court. Picture: Squillace Architecture

The current streetscape at 41-42 North Steyne at Manly. Picture: Squillace Architecture

Mr Arnaout wanted to partially demolish existing properties — 41 and 42 North Steyne – but the development application was rejected by Northern Beaches Council.

On his property development company’s Iris Capital Group website, the development is described as a “luxury residential development” that is “coming soon”.

There had been objections from unit owners in the neighbouring Pacific Waves apartment complex including that the new development would reduce their privacy as well as increased noise, dust and traffic during the construction phase.

An artist's impression of the planned four-storey shop-top apartment complex planned for 41-42 North Steyne at Manly, shown from the rear, on Henrietta Ln. Picture: Squillace Architecture

The council also had concerns about the height of the new building and the floor space ratio — the ratio of a building’s total floor area to the size of the site on which it is built.

But the Land and Environment Court published a ruling this week that the appeal Steyne Hotel Freehold Pty Ltd was upheld.

The ruling came after the council told the court that it had “no contentions” with a recently lodged amended application that answered some of the objectors’ concerns.

Court Commissioner Susan O’Neill ruled that she was “satisfied that it is lawful and appropriate to grant development consent to the amended proposal”.

The properties at 41 and 42 North Steyne at Manly, linked to the Hotel Steyne, that will be redeveloped into a luxury shop-top apartment complex after a Land and Environment Court ruling on September 20. Picture: Jim O'Rourke

Ms O’Neill also wrote that she accepted the evidence of heritage experts that the proposal has an acceptable impact on the heritage significance of the building and the surrounding “heritage conservation area”.

“I accept the agreement of the planning experts that the proposal, as amended, exhibits design excellence.

“The proposal reflects a high standard of architectural design exhibited in terms of the design materials and detailing, and that the external appearance of the development will improve the quality and amenity of the public domain.

Sam Arnaout in the Hotel Steyne soon after he bought it for $65 million in 2019. (AAP Image/ Adam Yip)

“The development will not detrimentally impact on existing view corridors or landmarks.”

Mr Arnaout’s Iris Capital bought Hotel Steyne for $65 million in 2019 from hospitality industry veterans John Singleton, Arthur Laundy, Robert Whyte and investment banker Mark Carnegie.

CEO of Iris Capital, Sam Arnaout, overseeing the renovations at Hotel Steyne in 2020. Picture: Supplied.

He described it as the “jewel in the crown” of his burgeoning hotel portfolio.

Mr Arnaout’s also bought the Ivanhoe Hotel, on The Corso, in early 2021 for $60m.

2020.

He has been contacted for comment.