$5.3m price tag for Waratah sale

THE State Government says supported accommodation at The Waratah Hotel could be operational by early next year after it was revealed it paid $5.3 million for the site.

The purchase settled on September 30 after the Government confirmed in August it had entered into an agreement to buy the iconic Murray St pub to turn it into affordable housing.

Housing Minister Roger Jaensch said it formed part of the Government’s $125 million Affordable Housing Action Plan 2.

“Plans are being finalised to refurbish the site to deliver 24 ensuite units with communal areas and administration and support services,’’ he said.

“Once complete, a development application will be submitted to the Hobart City Council.”

Mr Jaensch said the purchase money was well spent, though he could not provide a figure on what the refurbishment would cost.

“While our immediate focus for that site is to transform The Waratah into supported accommodation as soon as we can, that site also gives us options to provide other accommodation on that site into the future,’’ he said.

Real Estate Institute of Tasmania president Tony Collidge said he thought the Government’s purchase was at a premium price but in range.

“My gut feeling is it was a premium price,” he said.

“I would suggest they bought it off market which means it wasn’t for sale so it … hadn’t tested the market.

“To secure those sorts of properties you usually pay a premium because you’ve got to interest the seller to sell. I would suggest it’s probably in the upper end of the range.

“They didn’t get a bargain out of it, but in the Hobart market at the moment there are no bargains because everything is just that scarce.”

Mr Collidge said the former Coogans site in Hobart sold recently for $4 million.

Mr Jaensch also pledged support to a proposal by The Salvation Army and Hobart City Mission to create a nighttime safe haven for Hobart’s homeless.

About $450,000 is needed to run a six-month pilot program, with Mr Jaensch promising to throw financial backing behind the initiative.

“We will definitely be a major contributor to the cost,’’ he said.

Mr Jaensch yesterday also promoted the free Housing Ends Homelessness Expo to be held this weekend.

He said it would address the full spectrum of housing needs, from crisis accommodation to affordable home ownership.

Free bus services from Hobart’s surrounding suburbs will be put on for the expo, which will also feature activities for children, guest speakers and a free barbecue.

The event will be held on Sunday from 10am to 4pm at City Hall.