Arabic version: تقرير يثير تساؤلات حول عقد إيجار ملعب ويلكينسونز بوينت
According to ABC News, a Tasmanian parliamentary report has found that Larry Kestelman’s LK Group is effectively leasing the Derwent Entertainment Centre for less than $30,000 a year after a government payment is taken into account. The venue, also known as MyState Bank Arena, is located at Wilkinsons Point.
The base rent for the centre is $200,000 annually, adjusted for CPI. However, the Tasmanian government pays LK Group $175,000 a year, leaving revenue of less than $30,000, or about $577 a week. Shadow Treasurer Dean Winter said the annual subsidy had not been disclosed during a 2020 Parliamentary Public Works Committee review, while the report said the government overstated revenue and failed to disclose the hiring fee during the committee process.
The Public Accounts Committee said the proposed sale of Wilkinsons Point had exposed “serious and longstanding failures” in public-asset management. It found there was no binding sale, business case or agreed masterplan despite six years of negotiations between the government and LK Group. The government acquired the Derwent Entertainment Centre and surrounding land in 2020 after the proposal began through Glenorchy City Council.
In February 2025, Premier Jeremy Rockliff said the government had agreed to sell the Crown land to LK Group at a value set by the valuer-general for a multi-use retail precinct, family resort and hotel complex. A later auditor-general report identified significant shortcomings in advice and process, while an incoming government brief warned that activating the site could cost taxpayers $100 million and that there was no certainty of development or a contribution to costs from LK Group.
The committee recommended pausing negotiations until the government reports on their status, any revised development proposal, estimated public costs and progress on auditor-general recommendations. It also called for a review of the lease agreement. Minister Nick Duigan said the government remained committed to the opportunities at Wilkinsons Point.
