19 June 2020

Cinema update: Development Application submission period closed

| My Gungahlin
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Last year saw the development application for the cinema development finally submitted for public comment and this subsequently closed on the 23rd December. Any submissions received through this process will now need to be considered by The Environment, Planning and Sustainable Development Directorate and the developer.

The development will see construction of a three storey building comprising of a cinema, retail and commercial space and basement car parking. The development is on the block bounded by Kate Crace Street, Hibberson Street, Efkarpidis Street and Hinder Street. Half the block will be developed with the construction of this building whilst the other half will be constructed to offer additional on grade car parking.

Construction is expected to commence soon with completion once final development approvals have been given with the complex expected to be open by the end of 2018.

Construction commencement may be impacted by a legal proceeding between the developer and United Cinemas. We announced in April last year Gungahlin cinema reaches another key milestone with the announcement of Hoyts Cinemas to be the cinema operator at the development. United Cinema’s in March 2016 lodged a caveat over the land where the proposed development is to be built being Block 1 Section 12 Gunghalin. The terms of the caveat is based on the claim by United Cinemas as having “an equitable interests as lessee under an unregistered agreement for lease and an unregistered lease”.

In January 2016 expressions of interests was issued for the leasing of the proposed cinema to Hoyts Cinemas, Event Cinemas and United Cinemas. All three cinema operators provided responses to this expression of interest. Following on from from discussions and negotiations from the EOI process United Cinemas are claiming that they have a legal agreement which they expected them being the successful lessee of the cinema and have subsequently lodged the aforementioned caveat. The developer is disputing this claim.

The matter will be going before the Supreme Court of the Australian Capital Territory on 3rd February 2017.

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