Property ‘worth millions’ bought for $1 in Tasmania

An almost forgotten proviso in a contract from the 80s has seen a Tasmanian property “worth millions” snapped up for just $1.

A Tasmanian charity has snapped up a property “worth millions” for the extremely low price of $1.

The property in Launceston was owned by disability service provider St Giles before it was sold to the Education Department in the 1980s for 50 cents.

It was home to Newstead Heights School, which closed in 2017, and adjoins the charity’s current facility.

Fortunately for St Giles, the original deal had an important catch: the charity could buy the property back for the equivalent of 50 cents when it was no longer needed for the school.

But after all these years, the proviso was almost forgotten and the government tried to sell the property.

Former employee Meryl Hudson who remembered the agreement cut the cake to celebrate the good news. Picture: St Giles

“The agreement to sell it to the Department of Education for 50 cents was back in 1984, that’s a long time ago, people move on and people change within government and within St Giles,” St Giles chief executive Honni Pitt told ABC Northern Tasmania Breakfast.

Ms Pitt said a sale sign out the front of the former school prompted a longstanding St Giles employee to mention the agreement possibly in place.

“There are three employees who have been with us some time who had heard of this arrangement and spoke about it, mentioned it, brought it up and we went digging through the archives, found the old minutes of the meetings and thought, ‘you know what, it’s true’, and we reached out to the state government,” Ms Pitt said.

St Giles plan to turn the site into a multipurpose community health hub. Picture: St Giles

Due to inflation that 50 cents became $1 – but the charity was still able to secure the buildings and land for an almost unbelievable price.

Launceston real estate agent Phillipa Jenkins told ABC it would be “worth millions”.

St Giles want to turn the old school into a multidisciplinary community health hub.

Ms Pitt said in a statement the charity was started 85 years ago by people in the community looking to give and now they wanted to give back to that community.

“Initial plans for the development could include a subacute medical facility, mother and baby unit, disability learning and lifestyle hub and a complete overhaul of the hydrotherapy pool,” she said.

Local Launceston architects delivering the initial plans for the site last week. Picture: St Giles

Launceston architects 6ty°, which have developed concept plans for the site, estimated a $7 million refit.

“6ty° is thrilled to announce our involvement in the multimillion-dollar redevelopment of Launceston’s former Newstead Heights Building,” the firm posted on Facebook.

7 News Tasmania reported the firm was drawing up the plans for the site for free.

Director and architect David Gillies said there was about 12 to 18 months of work needed from them before building could start.

Ms Pitt encouraged people to send their own thoughts and suggestions for what services they would like to see at the Amy Road site.

Originally published as Property ‘worth millions’ bought for $1 in Tasmania