An artist’s impression of the Gungahlin cinema proposed by Krnc Group. Image: Supplied.
A new multi-use precinct being proposed for the Gungahlin Town Centre may offer an impatient community new hope of a cinema being built.
The Planning Authority greenlit Krnc Group’s cinema project almost six years ago, but a sod has not been turned on the site at the corner of Hinder and Efkarpidis streets.
Krnc Group did not respond to Region questions, but United Cinemas CEO Roy Mustaca said the company was still negotiating with the developer.
Mr Mustaca said United still hoped to operate a cinema in Gungahlin, but the industry climate post-COVID and cheap streaming options made it challenging to launch new ventures.
“It’s difficult to spend the amount of money you need to do a decent cinema, and we’d only do the best, we don’t do anything cheap, and so therefore, it’s got to stack up,” he said.
But a Gungahlin cinema was still on the table, according to Mr Mustaca.
A new petition sponsored by Yerrabi ACT Greens MLA Andrew Braddock calls on the ACT Government to investigate delays in the approved Gungahlin cinema development, ensure the developer meets its obligations and commit to an enforceable timeline.
But an alternative has emerged in Canberra-based developer Englobo Group’s Gungahlin 2030 project.
Before Christmas, the company lodged a development application for early works associated with this project, which is slated for a 16,341-square-metre vacant site on the corner of Hinder and Hibberson streets, alongside the light rail line.
Englobo wants to build a mixed-use retail and entertainment precinct comprising commercial space, apartments, a premium hotel, offices and short-stay accommodation.
The ACT Government said Englobo also intended to incorporate a cinema into the development on Block 2 Section 11.
“The developer for the site is actively engaging with the Planning Authority and, on 8 December 2025, lodged a DA for early works for part of the development,” a spokesperson said.
“The application for early works does not include a cinema as such. However, a cinema may be included in a future DA for above-ground works.”
Building massing for Englobo Group’s Gungahlin 2030 proposal. Image: Englobo
The government spokesperson said that despite the time elapsed, Krnc Group was not the subject of regulatory action from Access Canberra and had not breached its lease.
In fact, planning provisions could allow the developer to potentially sit on the site until March 2028.
“On 28 February 2022, a Crown lease was granted for Block 2 Section 12 with a purpose clause of an indoor entertainment facility that must include a cinema with a minimum gross floor area of 3000 square metres,” the spokesperson said.
The lease included a building covenant clause requiring development to be completed within 24 months of the lease date.
Under the Planning Act 2023, the lessee was taken to comply with the building and development provision if they paid a non-compliance fee as required.
Krnc Group had not done this, but the Planning (General) Regulation 2023 allowed the first four years from the completion date, as required in the Crown lease, to be a fee-free period.
“The lessee of the block is within that fee-free period, therefore regulatory action has not been considered at this stage,” the spokesperson said.
Krnc Group could apply for a lease variation to remove the requirement for a cinema if it wanted to, the spokesperson said.
Planning Minister Chris Steel said the regulator, Access Canberra, was monitoring the situation at the Gungahlin cinema.
Mr Steel said Englobo’s proposal could potentially accommodate a cinema, should there be a commercial agreement for a cinema operator to come into the site.
“We’re certainly aware of the situation in Gungahlan and Access Canberra is monitoring that very closely, but there is, of course, an active development application that’s being proposed at the moment there,” he said.
Original Article published by Ian Bushnell on Region Canberra.
