Warrnambool City Council has issued preliminary planning approval for the development, which will extend the landmark complex to the north. 

The extension will provide space for eight specialty stores and two “mini majors”, similar to Best & Less and The Reject Shop. 

The works also include an acoustic wall along the northern boundary. Gateway Plaza operations and retail manager Melanie Wright said there was no estimate on the development’s budget or the specific shops expected to move in. 

“We haven’t finalised all the retail deals,” she said. “It could be fashion or homewares and a mix of other services.

“We are very excited about this development as it will allow us to better service the growing Warrnambool community, encourage increased retail shopping in Warrnambool and provide further employment for locals.

“As the planning and construction stages progress, we look forward to keeping our shoppers updated.”

She said there would be a slight reduction in the number of car parks but not enough to affect shoppers.

Sydney-based investment company Armada Funds Management bought the 11.9-hectare property for $39.25 million last year.

Warrnambool City Council first approved a large expansion for Gateway Plaza in 2012, which included another 805 parking spaces and a discount department store.

Armada managing director Chris Monaghan was quick to put the previous owners’ ambitious expansion plans on hold.