State Cinema sale: Cinephile John Kelly to sell historic complex
Hobart’s historic State Cinema is on the market. Picture: Supplied
It’s the type of sale that comes along just once in a lifetime.
North Hobart’s iconic State Cinema has been listed for sale today.
This Hobart cultural institution has entertained generations of Tasmanians for over 110 years, since it was originally built in 1913 as a moviehouse.
The State Cinema is one of the world’s oldest operational cinemas.
Located in Hobart’s premier restaurant and entertainment precinct, the State Cinema is described as the beating heart of the vibrant Elizabeth Street strip.
Prominent Tasmanian businessman John Kelly took the original one-screen, much-loved but rundown venue, and expanded it into a 12-screen complex. It now includes a bookstore, wine bar, cafe and an outdoor rooftop cinema.
The adjoining heritage sandstone Soundy Building, which was built in 1883, was one of Hobart’s original department stores.
This elegant building is home to a mix of retail tenancies and offices.
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State Cinema.
State Cinema.
Upon the completion of a 20-year restoration program — and with patronage estimated to be in excess of 250,000 people annually — Reading Cinemas acquired the operation of the State Cinema in 2019 to add to its international cinema portfolio.
As an investment, Mr Kelly credits the property’s strong financial performance to its main long-term tenant, which holds a secure 15-year lease.
With a total net annual return of about $1.27m, the State Cinema and adjoining tenancies provide a reliable and steady income stream for potential investors.
“It’s time for me to pass the torch to the next custodian of this much-loved Hobart institution,” he said.
“An exciting opportunity awaits for the next phase of development and to further enhance North Hobart as Tasmania’s premier entertainment and restaurant precinct.”
State Cinema.
State Cinema.
The property is listed for sale with Ray White Commercial Tasmania partner Claude Alcorso and Burgess Rawson partner Matthew Wright.
The agents say this significant asset represents a rare opportunity to acquire a historic cinema and piece of Hobart’s real estate history, in a prime location, offering steady income to a long-term reputable tenant.
Mr Wright said cinemas have made a strong comeback as a property investment, thanks to their steady client demand, long-term lease profiles and reputable tenants, especially listed entities.
“The Australian cinema market is projected to reach $1.8bn in revenue by 2025, with an annual growth rate of almost 3 per cent, leading to a projected market volume of more than $2bn by 2029,” he said.
“Couple this with the growth of Tasmania’s tourism over the past decade and the imminent arrival of the AFL Tassie Devils team to Hobart, the future upside of Hobart, and in particular this site, is endless.”
John Kelly. Picture: Nikki Davis-Jones
Marta Dusseldorp the star of Bay of Fires. Bay of Fires Tasmanian premiere in Hobart at the State Cinema. Picture: Nikki Davis-Jones
Author Richard Flanagan, actor Essie Davis and State Cinema owner John Kelly at the State Cinema in North Hobart after the release of the film Babadook. Picture: Matt Thompson
Mr Alcorso said the State Cinema is one of the most beautiful and history-rich cinemas in the country.
Its sale provides buyers the opportunity to be the next custodian of this “monumental Tasmanian landmark,” he said.
“This remarkable piece of Hobart’s history is set within an expansive 3983sq m site, home to a diverse range of tenants. It is anchored by NASDAQ-listed Reading Cinemas, alongside a carefully curated mix of market-leading specialty tenants across office, retail, and hospitality sectors, creating a dynamic and vibrant environment,” he said.
The property is being sold via an expressions of interest campaign, closing March 13 at 4pm.
