Latest News

Back to Latest News back

 

Tasmanian NBL consortium unhappy with $18 million Derwent Entertainment Centre valuation

Tasmanian NBL consortium unhappy with $18 million Derwent Entertainment Centre valuation
August 23, 2018

Looking to purchase the Derwent Entertainment Centre (DEC) as part of their bid to join the National Basketball League, proponents of the Southern Huskies NBL consortium are unhappy at Glenorchy City Council's valuation of the venue.

Monday night saw the Council vote unanimously to sell the arena after receiving an unsolicited bid from entrepreneur and Southern Huskies bid leader Justin Hickey to buy the complex earlier this year.

However, as the ABC reports, Hickey believes the arena is worth nowhere near the $18.6 million figure the Council has had it valued at.

Hickey told the ABC “they've gone down the path of engaging people to do an evaluation and they've come up with a figure that is astronomically extraordinary.”

Glenorchy Mayor Kristy Johnson said the valuation was required for accounting purposes, and did not necessarily reflect the market value of the site, advising “the $18 million figure is the figure we have on our books for depreciation purposes.

"That doesn't mean that's what the property is worth on the open market, or what the Council might achieve through the sale of it."

A commercial valuation has also been conducted, but Mayor Johnson would not reveal what that number was, and insisted the Council would not be rushed into a sale.

Mayor Johnson added “we're still getting information about the valuation of the Derwent Entertainment Centre to ensure that we have all the figures in front of us, and all the information and factors to determine what does best value for the community actually mean.

"We're mindful that the consortium has a timeframe they'd like to meet, but I make the point that this is not a fire sale."

If successful in purchasing the centre, Hickey plans to house an NBL basketball team there, and pour $90 million into developing the site.

He said he had only had minimal correspondence from the Council since making the offer earlier this year, advising “the last correspondence was me asking the Mayor if she could provide a copy of the valuation they got and she hasn't been forthcoming with that.

"We're just asking for information that is prudent when we're looking to buy something as big as the DEC.

"We'd like to buy the place but time is running out.”

The Council could move forward with a sale of the DEC or decide to lease the venue.

If the Southern Huskies are granted an NBL licence, it is likely the team wouldn't enter the league until the 2021/22 season.

Opened in 1989, the DEC is the largest indoor arena in Tasmania and is the primary venue in Hobart for large indoor functions and events.

Located on River Derwent waterfront, the venue can hold up to 7,500 people for events such as concerts with a seating capacity of 5,400.

Between 1989 and 1996, it was the home of Tasmania's former NBL team, the Hobart Devils.

Image: The DEC with potential Southern Huskies branding. Courtesy of the Southern Huskies.

Related Articles

22nd August 2018 - Total Sport & Entertainment takes ownership position in Sydney Kings

16th July 2018 - Australasian venues strong performers in Pollstar’s Mid-Year concert rankings

11th January 2018 - Paul McNamee takes on new Basketball Australia commercial role

25th July 2015 - Larry Kestelman aims to lead National Basketball League rejuvenation

26th November 2012 - Basketball Australia calls for retention of ‘No School No Play’ program

22nd May 2012 - Glenorchy community and sports hub moves forward

6th October 2011 - Venue Management Services to manage Hobart’s newest function venue


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

TECHNOGYM AUSTRALIA

Technogym is the leading company in the Wellness and Fitness field all over the world. With 2,200 employees, 14 branches in Europe, U.S., South America, Asia  and Australia, Technogym exports its…

read more

Fitness / Technology / Wellness

 
 

LINKS MODULAR SOLUTIONS

Links Modular Solutions are a leading provider of high-quality, innovative software solutions for leisure facilities. Our software suite includes modules such as POS, Classes, Members, Facility…

read more

Access / Billing / Finance / Fitness / Technology

 
 

Clubware

Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…

read more

Access / Billing / Fitness / Recreation

 
 

COMMERCIAL AQUATICS AUSTRALIA

Commercial Aquatics Australia provides aquatic solutions nationwide and is one of the largest and most experienced companies specialising in the design, construction, renovation, service, maintenance…

read more

Aquatics / Design / Play / Waterparks

 
 

REGUPOL

Regupol Australia Pty Ltd offers a comprehensive range of recycled rubber fitness and leisure flooring surfaces. Their range of products include everroll rubber flooring, Regupol elastic…

read more

Fitness / Recreation / Safety / Surfaces

 
 

PlayRope

Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…

read more

Aquatics / Attractions / Parks / Play / Recreation

 
 

BODY BIKE AUSTRALIA

BODY BIKE® International is a leading manufacturer of indoor bikes with a 20-year track record of creating the best indoor bikes. Stay connected with Body Bike Australia…

read more

Fitness / Recreation / Sport / Technology / Wellness

 
 

Aussie Strength

We are Aussie Strength. The ultimate supplier for Commercial Gym Equipment that's built to deliver in the toughest environments. From USA-Built hardcore weight training equipment from Arsenal…

read more

Fitness / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business