Hobart waterfront venue near future Tasmania Devils AFL stadium for sale or lease

The c1900 sandstone stunner at 11 Franklin Wharf, fronting Franklin Wharf in Sullivans Cove, comes with a $3.1 million fit-out, vacant possession, and flexibility to buy or lease.

Leaving aside the stadium’s arrival, the former hospitality asset is already well-located in a tourism hotspot with high foot-traffic, opposite the MONA ferry terminal and the road into Salamanca Place. 

The property is being co-marketed by Elders Commercial in conjunction with RWC Tasmania and HTL Property via an expressions-of-interest campaign closing on Thursday.

Although the agents declined to provide a price guide, industry sources expect the property to fetch about $9 million. 

Stadium proximity advantage

Macquarie Point Stadium is one of Tasmania’s most significant infrastructure and urban renewal projects and is expected to drive unprecedented demand for nearby hospitality and entertainment venues when it opens.

“This building will be a cornerstone hospitality offering to consumers of the entertainment precinct it will no doubt become, much like venues near the MCG in Melbourne, like the Duke of Wellington or the London Tavern in Richmond,” says Elders Commercial director George Burbury.

“You can absolutely envisage stadium-goers dining or having pre-drinks at the venue before the event, and then reconvening there after.”

Property features and layout

The standalone 1200-square-metre, two-level building – originally built as Water Police barracks – has long been a popular hospitality hotspot, operating from a 679-square-metre land parcel with dual frontages to Franklin Wharf and Morrison Street.

Until recently, it was home to the popular Post Street Social bar and restaurant downstairs and The Observatory nightclub and event space upstairs, complete with an 80-seat deck overlooking the harbour.

The vacant possession follows the voluntary administration of former lessee Pub Banc Group in July, which led to the closure of seven venues under its Seven Hobart brand.

“While the circumstances behind this sale are unfortunate for the staff and community connected to these venues, our focus now is running a clean, transparent process,” says co-selling agent Tom Balcombe, partner of RWC Tasmania.

Meanwhile, the first steps towards the new stadium have begun in the past couple of weeks at the Macquarie Point precinct, with contaminated soil being removed from the former industrial and rail site immediately east of the CBD.

Tasmanian Premier Jeremy Rockliff describes the state-funded project, approved in parliament last year, as part of a four-decade dream to enter a Tasmanian team into the AFL, and a significant economic opportunity for the visitor economy.

The venue will host year-round AFL, cricket, concerts and other major events, anchoring one of Australia’s largest urban renewal projects and becoming the Tasmania Devils’ home ground.

A new stadium was a condition imposed by the AFL for the state to receive its own AFL licence, and the Tasmania Devils are now set to enter the league in 2028, initially playing at Hobart’s local Bellerive Oval before moving into the new stadium on its completion. As major co-tenants, the club will share the stadium with the AFLW side.

“There is significant local and national interest in the [hospitality] asset, which has primarily been driven by its near proximity to the future MacPoint Stadium precinct,” Burbury says.

Adding further momentum to the precinct are major regional developments including the $330 million Hobart Airport upgrade and the nearby $300 million Hanging Garden Precinct.

The successful buyer will inherit a turnkey hospitality venue, with the building boasting more than $3.1 million in recent capital investment – including a ground-floor upgrade in 2015 and a $2.4 million top-floor overhaul in 2019, complete with high-spec bar setups and advanced AV systems. 

Redevelopment and adaptive reuse

“This isn’t just a hospitality play,” says Scott Newton, commercial director at Elders. 

“Subject to council approval, there’s genuine scope to reimagine it as a boutique hotel, premium office space or high-end retail.”

The address is one of the most exposed positions in Sullivans Cove, a popular tourist destination transformed by the floating Brooke Street Pier and boasting the city’s highest foot traffic.

“A short walk from Salamanca Markets, this is one of the most recognisable buildings on the waterfront,” Burbury says.

“The vacant possession means a buyer can shape it around their own plans from day one, whether that’s a landmark hospitality venue or something entirely different.”

The property is listed for sale via expressions of interest closing at 4pm on Thursday, August 13.