The Tasmanian government has purchased a 3.9-hectare aged care site in Hobart for $33 million to house a new mental health facility for older Tasmanians.
Deputy Premier Guy Barnett announced the deal on Monday, confirming the government had signed an agreement to buy Rosary Gardens from Southern Cross Care.
Settlement is scheduled for September 30, with a revised masterplan for the St Johns Park Health and Wellbeing Precinct due by June 30.
Rosary Gardens will remain open and operational until that date.
“This is about investing and reinvesting in services that support Tasmanians with mental health illnesses and indeed complex dementia needs as well,” Barnett said.
The new facility will replace the Roy Fagan Centre, which Barnett described as “simply not fit for purpose”. The current lease for that centre expires in 2029.
The purchase represents a shift from the government’s original plan to build a new mental health precinct from scratch on the St Johns Park site.
Instead, existing buildings at Rosary Gardens will be remodelled and upgraded.
Barnett said the revised approach would achieve the same outcomes while remaining within budget.
“Due diligence has been occurring for more than 12 months now,” he said.
“Those discussions progressed further with Southern Cross Care deciding to put this property on the market later last year and so the government’s stepped up, seen the opportunity, taken it aboard with both hands.”
When asked whether rising construction costs had forced a change in plans, Barnett did not give a direct answer.
“This is a better option,” he said.
“We’ve got 3.9 hectares here with lots of buildings that need to be brought up to being fit for purpose and then we’ll have opportunity for delivering even more and better services on this very substantial site.”
Rosary Gardens is Southern Cross Care’s largest property holding.
Board chair Sonia Byers said the decision to sell was strategic, reflecting a growing preference among older Tasmanians to receive care at home rather than in residential facilities.
“We are pleased and delighted and reassured that Rosary Gardens will be repurposed and used as a home for older persons experiencing mental health,” she said.
Proceeds from the sale will be reinvested into Southern Cross Care’s services, with Byers confirming the organisation has no plans to sell other properties.
The Rosary Gardens purchase forms part of a broader state government mental health strategy.
An $80 million mental health precinct is already approved for development next to the Launceston General Hospital, while a further $40 million facility is planned for the state’s north-west.
The government will now consult with mental health experts and stakeholders to finalise plans for the new facility.
