Photo: Penny Stephens

Minister for Planning Richard Wynne has approved a 64-storey development which will have 632 one, two and three-bedroom apartments, retail space, car and bike parking.

Permit conditions include laneway upgrades and space dedicated to community use, such as a childcare centre, for at least 10 years after construction.

The $190 million project, designed by Ellenberg Fraser, will retain the existing deco-style frontage of the Commonwealth Motors building.

The developer has chosen to support non-profit organisation Homes for Homes and a percentage of apartment sales will generate more than $1 million for social housing.

Homes for Homes was established by The Big Issue to raise money for social and affordable housing, aiming to raise $1.8 billion over the next 20 years.

Their model is based on a percentage of the sale price upon settlement for each unit, plus a smaller donation every time the units are on-sold.

The funds are distributed to housing suppliers and provide accommodation for low-income earners, youth housing and emergency accommodation for women and children.