Stronach Property is in the process of buying more than 8000square metres of land including the David Maddison Building and beachfront land on Shortland Esplanade.

Mr Stronach said he would restore the existing David Maddison Building on the corner of Watt and King streets to provide 7500square metres of A-grade office space.

Plans for the beachfront site were not finalised, but Mr Stronach said there would be ‘‘two or three buildings’’ and they would be a combination of residential and hotel apartments.

The first stage is expected to be an eight-storey residential building similar to the Arvia apartments he finished last year on the corner of Watt Street and Shortland Esplanade.

In line with Mirvac’s approved master plan the second stage could be up to 18 storeys high, but Mr Stronach said that was highly unlikely.

‘‘It’s the last major development site on the beach on the east coast,’’ Mr Stronach said.

‘‘The lifestyle something like this can provide is brilliant and we can learn from the Arvia development and look at things that we can do a little bit better.

‘‘I still don’t know if we will do two or three buildings and maybe some hotel accommodation, but the preliminary designs are in and we’ll be selecting an architect soon.’’

The land parcels make up almost half of the former hospital site bought by Mirvac for development in 2007.

Mirvac built The Sebel Hotel and The Royal beachfront apartments before putting the remaining land up for sale.

Separate development applications will be lodged and Mr Stronach said he hoped to have the development application for the David Maddison Building lodged by the end of the month.

The application for the beachfront site would be finalised and before Newcastle City Council by the end of April, he said.