Sydney deputy mayor could pocket extra $45m by shrinking residents' apartments

The deputy Sydney mayor who infuriated residents by blocking streets for his extravagant wedding now risks provoking the ire of investors by reducing the size of off-the-plan apartments he has already sold by up to 40 percent in a move that could net him an extra $45 million.

Deputy Lidcombe mayor Salim Mehajer plans to shift some walls in one of his property developments in the Auburn council area, adding eight flats to each floor of the eight-storey development, the Sydney Morning Herald reports.

The new units will be sold for $720,000 each.

If the entire building is sold Mr Mehajer stands to earn an additional $45 million.

People who have already bought off the plan in the SkyPoint Towers development at 42-44 John St, Lidcombe were informed of the changes last week .

One couple who paid a deposit on their $600,000-plus apartment in May have seen their 150 square metre home reduced to 94 square metres.

Mr Mehajer's property firm Sydney Project Group, is also developing 36-40 John Street, Lidcombe.

Last September the politician applied to combine both sites and create a 14-storey complex, housing 192 residential units, 16 commercial units and basement parking for 283 vehicles, The Daily Telegraph reports

Purchasers were told to contact Dean Kang of Grace Partners Real Estate if they want to continue with the deal.

The deadline expired last week and the potential homeowners have reportedly not been offered compensation for the reduction in apartment size because the contracts they signed warned that there could be changes to unit sizes.

Mr Mehajer  declined to comment on the development and directed questions to his lawyer.

He made headlines last week when his extravagant wedding forced the closure of streets and saw a large number of police mobilised for crowd control.

But the deputy mayor was unrepentant in a KIIS FM radio interview on Sunday.

Mr Mehajer told Sandilands and co-host Jackie O that his neighbours had no reason to be upset as he had "nothing to hide".

"With regards to the traffic control and the vehicles there, we had a permit from council, however there was a number of vehicles, a number of motorcycles that exceeded the limit which I had no control over whatsoever," he said.

"They can investigate all they wish, I've got nothing to hide. I'll do everything I can and I'll do it the right way because I've got nothing to hide."