A billionaire internet mogul and property developer has inked a deal to buy government-owned land in Tasmania for a $500-million tourism precinct.
Valarie “Larry” Kestelman of internet service provider Dodo fame and owner of the National Basketball League is behind the plans for the 15ha site that neighbours the home of the state’s NBL team.
The surplus 15ha of Crown Land at Wilkinsons Point near Glenorchy, 10km north of the Hobart CBD, will be sold at a value determined by the Valuer-General, according to the Tasmanian Government.
Melbourne-based LK Group, led by Kestelman, plans to develop a retail precinct, resort and hotel complex on the site.
Projects by the developer in Victoria include the Capital Grand in Melbourne’s South Yarra and The Clarendon Residences at Southbank.
LK Group was instrumental in the development of the MyState Bank Arena, also at Wilkinsons Point.
Formerly called the Derwent Entertainment Centre, the arena was built in 1989 and underwent a $56-million upgrade in 2021.
It is home to the Tassie Devils Australian National Basketball League team, which became the 10th NBL team in Australia in 2020.
According to a report released by Infrastructure Tasmania in 2023, the Tasmanian Government invested $125 million to buy Wilkinsons Point, redevelop the MyState Bank Arena and develop the multi-sport facility.
The Wilkinsons Point development will be “one of the most significant private investments made in Tasmania”, according to the state, which is also planning a new ferry terminal, parking and services infrastructure as part of the deal.
LK Property Group has brought architects Fender Katsalidis on board for the development alongside landscape architects Oculus and planners Ireneinc to create a masterplan for the site.
According to its project website, the plans for the “underdeveloped waterfront site” along the River Derwent include a 12-storey, 250-key hotel, and 120 student apartments.
LK Group will also plan a sports centre with basketball courts, gyms, waterfront food and beverage facilities, as well as retail and new public spaces.
Near the Museum of Old and New Art (MONA), the precinct plans include the extension of public walkways along the foreshore to the proposed ferry terminal.
“The goal for this vibrant and engaging precinct is to create for sports and entertainment what MONA has done for culture and arts,” Fender Katsalidis said.
“With MONA continuing to lead the global art scene and Simon Currant’s innovative immersive experience planned for Cadbury’s in Claremont, the northern suburbs will become a tourist destination with this world-class development and infrastructure,” Tasmanian Premier Jeremy Rockliff said.
The Wilkinsons Point announcement comes as plans for the $775-million Macquarie Point Stadium face opposition and the state deals with cost blowouts and delays for the new Spirit of Tasmania ferries and associated port infrastructure at Devonport.
The Urban Developer Hotel Summit | A one-day conference dedicated to the hotel and accommodation sector in Australia. Click here
