Prominent businessman John Kelly has sold the iconic State Cinema in North Hobart, with the landmark property acquired by an undisclosed interstate investor.
The sale marks a significant milestone in the cinema’s rich, century-long history and highlights ongoing mainland demand for premium Tasmanian assets.
Sold by RWC Tasmania’s Claude Alcorso, Matthew Wallace and Burgess Rawson Partner Matthew Wright and Beau Coulter the transaction was described as a rare opportunity combining heritage charm, secure income, and a prime inner-city location.
The campaign generated 72 enquiries and three formal offers, with the successful purchaser securing the property under an unconditional contract.
Purpose-built in 1913, the State Cinema remains one of the world’s oldest operational movie houses.
Positioned in the heart of Hobart’s bustling Elizabeth Street entertainment and dining precinct, the property has long been a hub for the city’s creative and social life.
Seller John Kelly, who spearheaded the twenty-year restoration program, said the time had come to hand over the reins. “It was time for me to pass the torch onto the next custodian of this much-loved Hobart institution,” he said.
Mr Kelly revitalised the original single-screen venue into a thriving twelve-screen complex, now featuring a wine bar, bookshop, large café, and rooftop cinema. His careful stewardship also extended to the adjoining heritage-listed Soundy’s Building, a former 19th-century department store now home to a curated selection of quality retail and office tenants.
Reading Cinemas took over the cinema’s operation in 2019, adding the State to their international portfolio. The asset has continued to draw strong patronage, exceeding 250,000 annual visitors, underpinned by a long-term lease to Reading International and a strong tenant mix across the broader site.
Mr Wright said cinema assets have proven resilient in today’s market, bolstered by solid patronage, long lease profiles, and reputable tenants including listed entities.
“With Tasmania’s tourism industry continuing to expand and major developments like the AFL’s Tassie Devils team coming to Hobart, the outlook for the city, and this site in particular, is full of promise.
“Tasmania has emerged as Australia’s economic powerhouse, recording the fastest growth rate in the country according to the latest CommSec State of the States Report. The April 2025 report reveals Tasmania’s economy grew by 3.8 per cent over the past year, more than triple the national average of 1.2 per cent,” he said.
Claud Alcorso said that being involved in a landmark sale of this calibre was a proud moment for his team, and meant dealing with various interstate and international buyers.
“The fact there were international buyers gives you an idea of the current interest in Tasmanian property. The fact we have an unconditional contract at this price point further demonstrates that Hobart is still a safe haven for investment,” Mr Alcorso said.
Mr Alcorso added, “This is one of the most beautiful and history-rich cinemas in the country. It’s rare for an asset of this scale and cultural importance to come to market. We’re delighted to see it pass to a buyer who recognises its significance and potential.”
Set on a substantial 3,983sqm site and fully leased with a net income of approximately $1.27 million annually, the State Cinema continues to serve as both a cultural beacon and a dependable investment.
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