Heathcote Pub Transformation Approved on Appeal

Plans for the transformation of a South Sydney pub into 168 apartments have won approval on appeal.

The proposal to redevelop the Heathcote Hotel site at 1323-1329 Princes Highway, also known as 1 Veno Street, at Heathcote, 45km from the Sydney CBD, were filed with the Sutherland Shire Council in August 2024.

Developer Heathcote Tavern 1 Pty Ltd, of which Gavin Duffy of Duffy Kennedy Constructions is listed as the sole director, will demolish the current Heathcote Hotel to make way for the development.

The project proposed a “cold shell” commercial tenancy for a future pub, over which the apartments would sit.

The proposal relied on infill affordable housing provisions in the State Environmental Planning Policy (Housing) 2021, which allows height and floor space ratio bonuses in exchange for a proportion of designated affordable housing.

▲ A rendering of project designed by Dickson Rothschild.

Three new buildings were proposed. Building A will front Strickland Street and be delivered as part of Stage 1, Buildings B and C will be mixed-use and have two wings fronting Princes Highway as Stage 2.

Of the planned apartments, 25 will be affordable. 

However, the Sydney South Planning Panel refused the project in February 2025, saying that the height contravention was not justified, and that it was not compatible with the future character of Heathcote Village. 

Other issues included traffic and noise concerns, and that it would set an “undesirable precedent for similar inappropriate development”. 

A conciliation conference led by a team from Mills Oakley was organised by the court and held in October 2025, during which the council and developer agreed on issues of contention. 

The hotel site was found to have contaminants, but the council agreed with the developer that upon completion of approved remediation works, the land would be suitable for a proposed mixed-use development.

The court also ruled that stormwater management plans were sufficient, given that Water NSW had previously suggested that there were not adequate arrangements in the proposal to ensure minimal harm to surrounding watercourses. 

It also ruled that the height contravention of up to 22.96m, well above the permitted 16.9m, was allowable, saying that it was required to ensure that the scale of the buildings was compatible with adjoining development and the surrounding character of the area.

The development is to rise on a 7245sq m site north of the Heathcote village commercial centre, 200m from Heathcote train station. 

Sutherland Shire has a target of 6000 homes by 2029 under its state government-allocated targets to meet its obligations under the National Housing Accord. 

The council is developing place plans for Miranda and Sutherland-Kirrawee. Other centres including Cronulla are to follow.

Recently, Homes NSW launched requests for proposals to deliver 484 homes in the proposed Sylvania project to help the local government area on its way.