A $97-million redevelopment of Paddington’s iconic former Verona Cinema site has officially secured approval, paving the way for new housing, affordable rentals, and the long-awaited return of a cinema to Oxford Street.
The seven-storey project at 13–17 Oxford Street and 2 Verona Street will deliver 64 new homes, including 46 market-rate apartments, 14 designated affordable rental units, and four terraces. Ground-floor retail, a boutique bar, and a four-screen subterranean cinema complex will anchor the site’s commercial footprint, with construction slated to begin by late 2026.
From Commercial Office Hub to Residential Anchor
Developer WT Malouf originally won approval for an eight-storey commercial office building on the site. However, the proposal was dramatically overhauled after the company acquired neighboring properties at 13–15 Oxford Street.
The developer expanded the project footprint and shifted focus from desks to dwellings. Placing permanent residents along the Oxford Street corridor aligns with wider City of Sydney urban planning goals, bringing year-round foot traffic to an established inner-city enclave just three kilometres from the CBD.
Housing Trade-Off Sparks Local Scrutiny
While the addition of 14 affordable rental homes has been touted as a civic win, the development comes with a significant trade-off. To build the new complex, 27 existing apartments at 13–15 Oxford Street will be demolished—resulting in a net loss of lower-cost housing on the block.
Furthermore, the new affordable dwellings are only secured under that designation for 15 years, after which they can revert to market value. Housing advocates note that final consent conditions regarding eligibility, rental caps, and ongoing management will determine whether the scheme genuinely aids lower-income locals or simply accelerates gentrification.
Cultural Resurgence: The Return of the Verona
For nearly three decades, the Verona was an anchor of Sydney’s arthouse cinema scene before shuttering in 2024. Hollywood superstar Nicole Kidman officially opened the Verona Cinema on Valentine’s Day in 1996, giving the venue an early touch of Hollywood glamour.
Its revival—expected to be operated by Golden Age Cinema—is poised to reignite Oxford Street’s night-time economy, drawing evening patrons to nearby restaurants, bars, and retail strips.
In a poetic architectural twist, design firm Tonkin Zulaikha Greer (TZG), which originally converted the former industrial paper factory into the Verona Cinema back in 1996, has been retained for the redevelopment. The scheme will preserve and restore the building’s historic two-storey brick facade, respecting the strict guidelines of the Paddington Urban Heritage Conservation Area while inserting modern residential levels above.
Private Luxury Meets Public Benefit
The complex offers upscale amenities for residents, including a landscaped central courtyard, a rooftop terrace with a 20-metre infinity pool, and two basement levels providing 56 parking spaces. Yet the development’s ultimate value to Paddington will not be measured by its private luxuries.
Instead, its success hinges on whether the return of a beloved cultural institution and the boost to local trade can balance the loss of existing housing in one of Sydney’s most rapidly evolving corridors.
Published 5-Aug-2026
