Developer Third.i has applied to add 36 more apartments to its Merewether Golf Club seniors living complex to make the project viable amid rising construction costs.
Merewether Golf Club members gave the green light for the 148 apartments to go ahead six years ago, and state planning authorities approved a development application in 2021.
Third.i had hoped to start work in 2022 and finish this year, but the new projected completion date is 2027.
The redevelopment includes demolishing and rebuilding the Merewether clubhouse and erecting a residential complex across four buildings up to eight storeys.
The project, to be known as The Merewether Residences, will include changes to the course to accommodate the new buildings.
Third.i said on Monday that rising construction costs had forced it to "explore different pathways" to make the project financially viable.
"The construction industry has experienced a 50 per cent increase in costs over the past couple of years, and this has particularly impacted the high-density residential market," the company said.
Company co-founder Luke Berry said Third.i remained committed to building the apartment complex but would increase the number of units to 184 while reducing the size of a proposed new members' bar and "amenity".
"We've tirelessly navigated price escalation challenges on the current design, modelling multiple scenarios, working with numerous consultants, going to tender three times and ensuring our builders' prices are as competitive as possible," he said.
"However, due to rising costs, there is no solution for the current design and layout."
The amended development application includes an extra 36 apartments.
"These additions have been carefully integrated to preserve the project's original height and scale," the company said.
The developer said works would start next year, subject to council approval.
"The revisions have the full support of the Merewether Golf Club board," Third.i said.
The plans approved in 2021 included a lap pool, cinema, gym, workshop, communal kitchen, craft rooms and a "wellness centre".
Golf club president Phil Merrigan said the club board was "very positive" about the project "picking up momentum again" after the three-year delay.
Third.i is also working on the Dairy Farmers Corner apartment redevelopment in Newcastle West.
