A parliamentary report reveals that billionaire Larry Kestelman's company is leasing the Derwent Entertainment Centre from the Tasmanian government for less than $30,000 annually, or about $577 per week. Despite six years of negotiations, there is no binding sale agreement, business case, or masterplan for the proposed acquisition and development of Wilkinsons Point by Kestelman's LK Group. The report criticizes the government for overstating revenue and failing to disclose a $175,000 annual subsidy to Kestelman’s company during committee reviews.
Written locally by qwen2.5:14b on 2026-10-05,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In February 2025, Premier Jeremy Rockliff announced plans to sell Crown land at Wilkinsons Point to billionaire Larry Kestelman’s company, the LK Group, for development into a multi-use retail precinct, family resort, and hotel complex. However, an auditor-general's report later that year highlighted significant issues in the process and advised against proceeding without proper evaluation.
Recently, a parliamentary committee reported that Mr. Kestelman is leasing the Derwent Entertainment Centre from the Tasmanian government for less than $30,000 annually, equivalent to around $577 per week, which is notably below market rates for property rentals in the area. Despite ongoing six-year negotiations, there remains no binding sale agreement and no definitive masterplan or business case has been established.
The report identified "serious and longstanding failures" in managing this public asset and recommended pausing further negotiations until certain recommendations are implemented to ensure transparency and accountability.
Written for “NBL Stadium Rental Controversy” on 2026-10-05,
grounded in this article and the 0 other(s) covering the same event.
In short:
A report has found Larry Kestelman's company is effectively leasing the Derwent Entertainment Centre from the Tasmanian government for less than $30,000 a year — around $577 a week.
asserted
company → find → 30,000
Mr Kestelman is the billionaire property developer and owner of the NBL, and is in talks to buy the venue and surrounding Crown land.
The report also found that despite six years of negotiations between the Tasmanian government and Mr Kestelman's LK Group, there is no binding sale, no business case and no agreed masterplan.
asserted
report → buy → government
The Tasmanian government has been leasing out a stadium to billionaire and NBL owner Larry Kestelman for less than it would cost to rent most houses in the area, a parliamentary report has found.
asserted
report → lease → area
The Public Accounts Committee found the proposed sale of Wilkinsons Point, home to the Derwent Entertainment Centre, to Mr Kestelman has exposed "serious and longstanding failures" in the management of a public asset and negotiations should be paused until some of its recommendations are implemented.
asserted
some → find → recommendations
The report into the sale of Wilkinson's Point found that despite six years of negotiations between the Tasmanian government and Mr Kestelman's LK Group, there is no binding sale, no business case and no agreed masterplan.
asserted
report → find → government
It also found that the LK Group was effectively leasing the Derwent Entertainment Centre (DEC) for less than $30,000 a year.
asserted
Group → find → 30,000
"Larry Kestelman is a billionaire," Shadow Treasurer Dean Winter said.
"
asserted
Winter → say → ?
He has already sold the JackJumpers for a reported $35 million, while his company, a separate entity, is now leasing MyState Bank Arena for less than a family pays in rent for a family home in Glenorchy.
asserted
family → sell → Glenorchy
The base rate rent for the DEC is $200,000 a year, adjusted for CPI.
asserted
rent → adjust → CPI
But the Tasmanian government pays the LK Group $175,000, meaning Tasmania makes less than $30,000 a year, or approximately $577 a week.
asserted
Tasmania → pay → 30,000
The report and Mr Winter accused the government of "overstating the revenue and failing to disclose the hiring fee" during the committee process.
asserted
Winter → accuse → process
"The $175,000 annual subsidy was completely hidden from the Parliamentary Public Works Committee during its 2020 review," Mr Winter said.
"
asserted
Winter → hide → review
In the hearing, the government overstated revenues.
asserted
government → overstate → revenues
They have never disclosed the $175,000 annual payment back to Kestelman's company."
The committee found that the proposal to sell the land to Mr Kestelman began through Glenorchy City Council, before the state government took over when it acquired the DEC and the land surrounding it in 2020.
asserted
it → disclose → 2020
Since that time, the Tasmanian government has been working exclusively with the LK Group to sell the land.
asserted
government → work → land
In February 2025, Premier Jeremy Rockliff announced that the government had agreed to sell the Crown land at Wilkinsons Point to the LK Group "at a value determined by the valuer-general to enable the development" of:
- A multi-use retail precinct,
- A family resort; and,
- A hotel complex.
A report released later that year by the auditor-general found "significant shortcomings in advice and process" and a lack of a government business case to support the policy.
asserted
report → announce → policy
Then in an incoming government brief provided to Business and Industry Minister Felix Ellis following July's state election, the Department of State Growth warned that activating the site could cost taxpayers $100 million.
uncertain
activating → provide → million
The departmental brief also detailed that there was "no certainty of development or contribution to costs from LK Group".
asserted
brief → detail → Group
"The department's current recommendation is to cease negotiations on sale of land and consider offering the surplus land to open market," the note said.
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note → cease → market
In its report, the committee found that no agreement exists on how infrastructure costs will be shared between the government and LK Group, "notwithstanding years of negotiation on this point".
asserted
costs → find → point
It recommended that the government pause negotiations until it completes a number of recommendations, including tabling a report that sets out the status of negotiations, any revised development proposal, estimated public costs and progress on the auditor-general's recommendations.
asserted
that → recommend → recommendations
It also recommended that the lease agreement between the government and the LK Group be reviewed.
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agreement → recommend → government
Asked about the report's findings, government minister Nick Duigan said the government remains committed to the opportunities.
asserted
government → ask → opportunities
"Wilkinson's Point represents a massive opportunity for Greater Hobart in terms of new housing, activating Dowsing Point," he said.
asserted
he → represent → Point
"We're committed to the project."
asserted
We → commit → project
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