Rich Lister Larry Kestelman will combine two of his big passions in a newly approved $200 million masterplan that will redevelop the tired Derwent Entertainment Centre outside Hobart as a venue for Tasmania's new professional National Basketball League team.

The property developer and NBL owner started work last week on renovating the 21-year-old structure – a task he estimates by itself could cost up to $46 million – as the first part of a years-long plan to develop the 15-hectare precinct next to the Elwick Racecourse in Glenorchy.