$95M Project Pitched to Transform Newcastle’s City Heart

The transformation of Newcastle West continues with a $95 million proposal at 12 Steel Street. Salter Brothers lodged the development application (DA2024/01039) with the City of Newcastle Council on 2 January 2025. The project aims to create a vibrant mixed-use precinct with residential, retail, and public spaces.

High-Level Overview

The development will proceed in two stages. Stage 1 includes a 23-storey residential tower (Tower A) with 114 apartments. A mixed-use podium will offer retail spaces, parking, and communal areas. Stage 2 proposes a 19-storey residential tower (Tower B) and redevelops the Mercure-branded hotel into a modern mixed-use space. The plan also includes publicly accessible open spaces along Cottage Creek.

The project focuses on sustainability and urban renewal. High-performance facades, passive design, and renewable energy initiatives are key elements. The site spans 4,414m² and sits near Marketown Shopping Centre, Honeysuckle light rail stop, and other amenities.

Details of the Proposal

The project will deliver 228 apartments in total, with a mix of 1, 2, and 3-bedroom configurations. Stage 1 will retain the existing hotel and provide a temporary multi-deck car park. It will also include public domain improvements.

Stage 2 adds Tower B, extends the podium, and completes the landscaped park along Cottage Creek. Retail spaces at street level will encourage activity and provide amenities for the community. A total of 257 parking spaces will accommodate residents, visitors, and retail patrons.

Key Features:

  • Ground-Level Activation: Retail spaces along King and Steel Streets will create an engaging streetscape.
  • Sustainability: The project incorporates natural ventilation, renewable energy, and vegetation to meet BASIX standards.
  • Public Open Space: A landscaped parklet adjacent to Cottage Creek will be accessible to residents and the public.

The design also includes flood mitigation measures to ensure safety and accessibility for all users.

Development Team

The proposal brings together experts in urban design, planning, and sustainability:

  • Developer: Salter Brothers
  • Urban Planner and SEE Author: Ethos Urban
  • Architectural Design: Bates Smart
  • Landscape Design: Arcadia
  • Traffic and Environmental Assessments: Stantec
  • Heritage and Archaeological Reports: Heritas and Umwelt
  • Acoustic and Wind Assessment: CPP Wind Engineering Consultants
  • Waste Management Plans: TTM Consulting

Planning and Compliance

The proposal aligns with the Newcastle Local Environmental Plan (NLEP) 2012. It complies with Floor Space Ratio (FSR) and Design Excellence provisions. Variations to building height and separation standards have been requested under Clause 4.6, supported by public benefits like open spaces and enhanced connections to Cottage Creek.

Due to its scale and cost, the project will be assessed by the Hunter and Central Coast Regional Planning Panel.

Conclusion

The proposed development at 12 Steel Street represents a major investment in Newcastle West’s urban renewal. It promises to deliver high-quality housing, retail opportunities, and community-focused spaces. If approved, it will enhance Newcastle’s reputation as a vibrant, connected city.

For more details, search application number DA2024/01039 on the City of Newcastle Council website.

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