The iconic State Cinema is a Hobart cultural institution that has entertained generations of Tasmanian's for over 110 years. It was purpose-built in 1913 as a movie house and is one of the world's oldest operational cinemas.

Located in Hobart's premier restaurant and entertainment precinct, the State Cinema is the beating  heart of the vibrant Elizabeth Street strip.

Prominent Tasmanian local businessman John Kelly has taken the original one screen much loved but  rundown venue to a twelve-screen complex including a bookstore, wine bar, large cafe and outdoor  rooftop cinema.

The adjoining heritage sandstone Soundy's Building, which was built in 1883 was one of Hobart's  original department stores. This elegant building, which adjoins the State Cinema, now is home to a  mix of quality retail tenancies and offices which further enhances the street appeal and customer  experience.

Upon the completion of the twenty-year restoration program and with patronage in excess of 250,000,  Reading Cinemas in 2019 acquired the operation of the State Cinema to add to their international  cinema portfolio.

As an investment, Mr Kelly credits the property’s strong financial performance to its main long-term  tenant, which holds a secure 15-year lease with options on the fully occupied property. With a total net  annual return of circa $1.27 million, the State Cinema and adjoining tenancies provide a reliable and  steady income stream for potential investors.

"It's time for me to pass the torch onto the next custodian of this much-loved Hobart institution. An  exciting opportunity awaits for the next phase of development and to further enhance North Hobart as  Tasmania's premier entertainment and restaurant precinct,” Mr Kelly said.

Listed for sale through RWC’s Tasmanian Partner, Claude Alcorso and Burgess Rawson Partner, Matthew Wright the agents commented that this significant asset represents a rare opportunity to  acquire a historic cinema and piece of Hobart’s real estate history, in a prime location, offering steady  income to a long-term reputable tenant. 

Mr Wright said cinemas have made a strong comeback as a property investment, thanks to their steady  client demand, long-term lease profiles and reputable tenants, especially listed entities. 

“The Australian cinema market is projected to reach $1.8 billion in revenue by 2025, with an annual  growth rate of almost 3%, leading to a projected market volume of more than $2 billion by 2029,  Statista data shows.

“Couple this with the growth of Tasmania’s tourism over the past decade and the imminent arrival of the  AFL Tassie Devils team to Hobart, the future upside of Hobart, and in particular this site is really endless,” he concluded.

RWC Tasmanian Partner, Claude Alcorso said the State Cinema is one of the most beautiful and  history-rich cinemas in the country and provides buyers the opportunity to be the next custodian of this  monumental Tasmanian landmark.

"This remarkable piece of Hobart's history is set within an expansive 3,983sqm site, home to a diverse  range of tenants. It is anchored by NASDAQ-listed Reading Cinemas, alongside a carefully curated mix  of market-leading specialty tenants across office, retail, and hospitality sectors, creating a dynamic and  vibrant environment,” Mr Alcorso added.

The property is being sold via an Expressions of Interest campaign closing March 13 at 4pm.

As a born and bred Hobartian and beyond his business ventures John Kelly has had a lifelong involvement with his  community and is a current serving Hobart City Councillor.

He is recognised for his independent stance and dedication to community issues. During his tenure, he chaired the Creative City Portfolio and represented the  council on various committees, including the Wellington Park Management Trust and the Maritime Museum of Tasmania.

Mr Kelly's commitment to Hobart's cultural heritage is further exemplified by his involvement in projects like the Heritage Trams Restoration and Museum Society. His dedication to preserving the city's history and  promoting its cultural assets including the State Theatre and other heritage buildings has left a lasting impact  on the community. John was named Hobart's Citizen of the Year in 2016.