The development planned by the billionaire owner of the National Basketball League (NBL) and former Dodo telco owner, Larry Kestelman, was endorsed by Tasmanian Premier, Jeremy Rockliff, when the government agreed to sell him 15 hectares of Crown Land, subject to a price calculated by the state’s Valuer-General.
“It’s clear that investors can see the potential here in Tasmania, and an investment of this size is a huge vote of confidence in the Tasmanian economy and the northern suburbs,” said Rockliff.
“By partnering with private enterprise, we are excited for what will be more than $1 billion in economic activity that will follow.”
Business Events Tasmania CEO Marnie Craig told micenet that the development represented “a whole new precinct for business events” considering the hotel development, the sports arena that’s part of the plan and a proposed redevelopment by Glenorchy City Council of the adjacent showgrounds to include meeting and exhibition spaces.
Craig said she had met with Kestelman and he asked her what the business events sector needed to activate the arena. She indicated a hotel was required.
Kestelman has said he wants to create something similar to Melbourne’s Southbank with accommodation, food and beverage outlets and recreation facilities.
Wilkinsons Point, where the development will take place, is also home to Glenorchy Art and Sculpture Park (GASP) and Elwick Racecourse. Also close by is Tasmanian icon MONA, the Museum of Old and New Art, and the Cadbury chocolate factory.
As owner of the NBL and two of its teams, Kestelman’s LK Group was involved in the 2021 redevelopment of the local Derwent Entertainment Centre, built in 1989, into MyState Bank Arena, which not only hosts basketball but is a major conference, exhibition and event venue for up to 5,000 attendees.
The government expects the economic boost from the project will generate significant economic activity in Hobart’s northern suburbs.
Infrastructure to be developed by the government in association with the project includes a ferry terminal, as part of a masterplan to expand the service along the Derwent, as well as parking and other services.
LK Group has engaged architects Fender Katsalidis for the project. A range of facilities are suggested for the strip of land beside the river with the hotel rising 12 stories, offering 250 rooms, alongside food and beverage and meeting spaces. The precinct will also include 120 student apartments and a family friendly resort.
