A proposed private hospital project in New Town has been axed due to the cost of construction ‘more the doubling’, the developer says.
The Tasman Private Hospital, initially estimated to cost $60 million, was to be built by Nexus Hospitals on the old WIN TV site.
It would have included seven operating theatres, 26 overnight beds and various radiology and pathology medical services and a GP clinic.
However, following the demolition of the former WIN TV studios in March, the site has remained vacant due to a cost blowout of over $120 million.
In a letter sent to neighbours of the New Town Road project, Nexus said they “have had to cancel our plans to build the Tasman Private Hospital for the foreseeable future”.
“We have explored many options to address the significant commercial headwinds face by the project,” the letter said.
“The most material of these impediments has been the cost of construction more than doubling since 2021, and significant interest rate increases over the last 12 months.”
Nexus said it had been able to address “some of the cost pressures”, but not enough to “bring the project back to financial viability”.
The land will be put on the market, and any future hospital development would require a comprehensive redesign on a different site.
After multiple plan revisions and substantial community opposition, the Hobart City Council granted approval to the project in March 2021.
Nexus will now focus on continuing to run its Hobart Day Surgery.
