Neutral Bay landholder Arkadia releases plans to redevelop Theo’s Arcade, The Grove Shopping Centre into four towers

Dozens of shops are facing demolition under plans to replace two north shore shopping centres with high-rise towers overlooking Military Rd. See what’s planned.

A concept image of the development, which would cover 166-178, 184-192 and 198-214 Military Rd in Neutral Bay.

Dozens of shops, including restaurants, a bank and a chemist, could be bulldozed under plans to replace two north shore shopping centres with high-rise towers in the Neutral Bay town centre.

Four towers standing up to 12 storeys tall have been proposed for land currently occupied by The Grove Shopping Centre, Theo’s Arcade and the Neutral Bay Community Centre as part of large-scale planning proposal released last week.

Arkadia, a prominent Neutral Bay landholder that owns sites including the arcade, is leading the development.

The company is owned by the Karedis family, who started their business in Neutral Bay 68 years ago.

The planning proposal shows the development would include two 12-storey towers, an 11-storey tower and a nine-storey building.

A concept image of the proposed development.

The redevelopment would incorporate 148 units, commercial spaces, a new community centre, pedestrian links and landscaping works.

The plans are expected to reignite debate over the level of density that should be permitted in Neutral Bay after previous plans to increase height limits in the town centre sparked staunch community debate and divisions among North Sydney councillors.

The development site covers The Grove and Theo’s Arcade.

If approved, parts of the development would more than double the current 16m building height limit for the site, with the new towers standing up to 45m tall.

North Sydney Council previously proposed to allow building up to 12 storeys in parts of the town centre before rescinding the plan, partly due to strong opposition from community groups.

The council earlier this year released an updated Neutral Bay planning study, which capped the maximum building height for a majority of the town centre site at six storeys and eight storeys on “key sites”.

The development would transform the town centre, along with other multi-storey buildings planned for the town centre (shown in grey).

Arkadia’s planning proposal stated the “division between council planning staff and councillors” had made growth of the town centre “unavailable” and “compromised meeting the present and future demand for residential floor space in the locality”.

In its plans, Arkadia stated the development would help “deliver diverse housing options that meet the needs of the North Sydney community”.

“The proposed redevelopment of the site (includes) a new community centre, a vibrant mix of retail and commercial uses as well as residential dwellings above will enhance the Neutral Bay local centre,” the plans stated.

The development includes a mix of commercial and residential spaces.

“It will be a local destination that combines a vibrant mix of retail, hospitality and employment uses that enhance the village character of the Neutral Bay town centre.”

The development is the latest high-rise proposal planned for Neutral Bay and follows the release of plans to redevelop two Woolworths outlets in the town centre which have been earmarked for upgraded supermarkets and multi-storey housing.

In a statement, a North Sydney Council spokeswoman said the proposal would “undergo a detailed assessment before being presented to a council meeting to decide whether the amendment of the planning controls sought by the applicant is supported”.

The Sydney North Planning Panel is expected to assess the proposal.