The final stage of the East End development will be the "beating heart" of Newcastle, its billionaire backer has declared after winning an appeal to move forward with the project.
In May, the state's independent planning panel rejected the $160-million proposal, citing "unacceptable impacts" on public and private views and car parking.
However, the decision was overturned five months later, following an appeal by Iris Capital founder and chief executive Sam Arnaout.
Speaking with the Newcastle Herald from Dubai, Mr Arnaout said the project would be the foundation for a revitalised central business district.
"This development will be the beating heart of the East End, and a community meeting place for all Newcastle to come and enjoy for generations to come," Mr Arnaout said.
"It really can be a community village that can rival any in Sydney or anywhere in Australia."
Construction on stages three and four of the development is expected to start early to mid-next year.
The multiple towers, which will hold 190 units perched above 2000 square metres of retail, will take three years to build.
Mr Arnaout said the development would be a "breath of fresh air" for what had become a "derelict part of town".
He said it would be another step towards Newcastle's aspiration to become a global city.
"We're the second-largest city in the state, next year we'll have an international airport. Newcastle is ready for something like this," he said.
"The East End is perfectly positioned. Where else does the harbour meet the sea?
"It will be a catalyst project that will encourage others to deliver on their projects.
"It will give them the confidence to start."
Mr Arnaout said he was shocked when the proposal was knocked back and feared the city would have "lost so much over the stroke of a pen".
"It would have been a disaster for the city had it not been approved," he said.
"We were devastated when we got refused in the first instance.
"Commonsense has prevailed and now we're ready to get on with it."
Organisations directly affected by the increased building heights, such as the Christ Church Cathedral and the Newcastle Club, were disappointed by the approval.
Although they have accepted the decision, they hope Iris lives up to its promises.
Mr Arnaout was confident the development would deliver its promise to rejuvenate the area, and pointed to how stages one and two had transformed the precinct.
"I remember when I first got there 10 years ago, [East End] was derelict with very undesirable types walking around at all times of day, let alone at night," Mr Arnaout said.
"Our track record speaks for itself."
Hunter Street Mall business owners have previously told the Newcastle Herald they would have been forced to shut up shop had revitalisation not gone ahead, due to low patronage and rising anti-social behaviour.
Despite the uphill battle to get the project approved, Mr Arnaout said his experience with 'Newy' had been "overwhelmingly pleasant".
"I haven't got an axe to grind with anyone who objected to the project," he said.
