Next chapter for State Cinema begins with sale

Property owner John Kelly has sold North Hobart’s State Cinema building. Picture: Nikki Davis-Jones

There were dozens of inquiries and multiple parties vying to buy this piece of Tasmanian history.

And now it has been sold for an undisclosed, multimillion-dollar price.

North Hobart’s iconic State Cinema hit the market in early February.

Agents from Ray White Commercial Tasmania and Burgess Rawson fielded 72 inquiries and received three formal offers for the 3983sq m site.

Claude Alcorso, Matthew Wallace, Matthew Wright and Beau Coulter said this landmark property was acquired by an undisclosed interstate-based investor.

They said the sale marks a significant milestone in the cinema’s century-long history and highlights ongoing mainland demand for premium Tasmanian assets.

The sale was described as a “rare opportunity” combining heritage charm, secure income, and a prime inner-city location.

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The Liberty Theatre in North Hobart that became the State Cinema — 1935.

State Cinema.

Seller, John Kelly — who spearheaded the property’s 20-year restoration program — said the time had come to hand over the reins.

“It was time for me to pass the torch onto the next custodian of this much-loved Hobart institution,” he said.

Mr Kelly revitalised the original single-screen venue into a thriving 12-screen complex, now featuring a wine bar, bookshop, cafe, and rooftop cinema.

His stewardship also extended to the adjoining Heritage-Listed Soundy Building, a former 19th-century department store now home to retail and office tenants.

The fully leased property has a net income of about $1.27m annually.

Reading Cinemas took over the cinema’s operation in 2019, adding the State to its international portfolio.

The asset has continued to draw strong patronage, exceeding 250,000 annual visitors.

State Cinema.

State Cinema.

Mr Wright said cinema assets have proven resilient in today’s market, bolstered by solid patronage, long lease profiles, and reputable tenants including listed entities.

“With Tasmania’s tourism industry continuing to expand and major developments like the AFL’s Tassie Devils team coming to Hobart, the outlook for the city, and this site in particular, is full of promise,” he said.

“Tasmania has emerged as Australia’s economic powerhouse, recording the fastest growth rate in the country, according to the latest CommSec State of the States Report.

“The April 2025 report reveals Tasmania’s economy grew by 3.8 per cent over the past year, more than triple the national average of 1.2 per cent.”

State Cinema.

State Cinema.

Mr Alcorso said that being involved in a sale of this calibre was a proud moment for his team, and meant dealing with various interstate and international buyers.

“The fact that there were international buyers gives you an idea of the current interest in Tasmanian property,” he said.

“The fact we have an unconditional contract at this price point further demonstrates that Hobart is still a safe haven for investment.

“This is one of the most beautiful and history-rich cinemas in the country.

“It’s rare for an asset of this scale and cultural importance to come to market.

“We’re delighted to see it pass to a buyer who recognises its significance and potential.”