NBL owner signals end to Hobart waterfront deal as negotiations stall

National Basketball League owner Larry Kestelman has indicated he is prepared to abandon a protracted bid to develop premium Crown land at Wilkinsons Point in Hobart, telling a parliamentary inquiry that his patience has been exhausted after years of drawn-out negotiations with the Tasmanian government.

Mr Kestelman, who is also the former owner of the Tasmanian JackJumpers, first expressed interest in the development in 2019 at an estimated purchase price of $6 million. The Tasmanian government formally agreed to sell 15 hectares of Crown land to his LK Group in February 2025, paving the way for a proposed $500-million development.

Years of delays test developer's commitment

Despite initial enthusiasm for the project, negotiations have stalled significantly since the government's announcement. Mr Kestelman told parliamentary inquiries that while he remains supportive of the concept and vision for the waterfront precinct north of Hobart, his willingness to proceed has been severely tested by protracted delays.

"I would be quite OK to walk away," Mr Kestelman said, acknowledging that extended negotiations have diminished his appetite to continue pursuing the acquisition.

The site lies adjacent to the Derwent Entertainment Centre and represents one of the most valuable pieces of public land in southern Tasmania. Its development has become a significant point of contention between government and opposition political forces.

Opposition calls for open market sale

The stalled negotiations have intensified scrutiny of the government's approach to the land sale. Opposition representatives have seized on the impasse to argue that the Crown land should be placed on the open market to ensure genuine competition and maximise returns for Tasmanian taxpayers.

The Opposition's position reflects broader concerns about transparency and value-for-money in major Crown asset disposals. By restricting the sale to a single developer, critics argue the government has foregone the opportunity to test market demand and potentially secure a more favourable outcome.

Development significance for Hobart's waterfront

The proposed $500-million development would represent one of Tasmania's most ambitious urban renewal projects, with potential to transform the Derwent precinct and add significant commercial and residential infrastructure to Hobart's waterfront.

The project's fate now hangs in the balance. Should Mr Kestelman formally withdraw, the government faces a decision about whether to pursue alternative developers or reconsider the Opposition's calls for a competitive tender process.

The negotiations underscore the challenges of delivering major infrastructure projects dependent on private-public partnerships, particularly when protracted government processes and regulatory hurdles test investor confidence and commitment.

This article references reporting by ABC News.