One of Australia’s largest automotive retailers has snapped up a prime inner-city Hobart site originally earmarked for university expansion.
The Tony White Group purchased the former K&D warehouse on Melville Street from the University of Tasmania last month for $31 million.
The sale remained under wraps until this week.
The sprawling 11,000-square-metre block had been on the market since 2024, after UTAS abandoned plans to turn it into a mixed-use campus precinct.
Real estate agencies Burgess Rawson and Ray White Tasmania handled the sale, which drew more than 100 international enquiries.
In recent years, the property has been home to basketball academy Swisherr and has hosted monthly pre-loved clothing markets in its car park.
The Tony White Group operates around 60 car dealerships across Australia, along with several other automotive ventures.
Burgess Rawson said the company is yet to finalise plans for the site but suggested a mixed development is being considered.
UTAS originally bought the warehouse in 2019 as part of its ambitious push to relocate the Sandy Bay campus into Hobart’s CBD.
The former K&D block was intended to house university facilities, retail outlets and commercial spaces.
But those plans fell over in 2022 after Hobart voters rejected the city campus proposal, forcing the university to scale back its development ambitions.
Some advocates want to see the site turned into medium-density housing rather than more commercial space, arguing the CBD is in need of new residential options.
Hobart Greens MLC Cassy O’Connor said she hoped the sale wouldn’t become a “missed opportunity”.
“The former K&D site presents one of the most exciting opportunities the Hobart CBD has seen in decades,” she said.
“It could be developed into something amazing for the city – including medium density housing, opportunities for small business and vibrant public spaces.”
“Exactly what the buyer is planning remains unclear. We hope they stay true to their original statement about delivering something that enhances the city and has public benefit.”
The university recouped its $30 million purchase price in the sale.
