REVEALED: Future of Ipswich CBD hotel still uncertain

BUYERS are hesitant to invest in the iconic pub which closed in March

UNCERTAIN FUTURE: The Caledonian Hotel in Bell Street is closed. Picture: Rob Williams

BUYERS are waiting to see if the Ipswich Mall redevelopment is a success before shelling out cash to invest in the former Caledonian Hotel site.

A deal was almost done with a tenant who planned to revive the closed Caledonian Hotel on Bell St, but that party recently withdrew its interest.

Real estate agent Graeme Watts said while he was confident the deal would go through, the tenants found another location to rent at the last minute.

So far, he said, only that tenant and a potential developer have shown interest in the site, located at 9 Bell St, Ipswich.

Otherwise, he says, interest has been lacking.

"There was an interested buyer and a tenant," Mr Watts confirmed.

"The other was going to run it as a bar. The buyer was going to redevelop the site."

While he couldn't offer specifics, the real estate agent said the developer planned to add multiple levels onto the building and shy away from the site's former use as a pub.

"It's got a pretty broad use but they saw the potential to build something higher because you can go up to 45m in height, it's only two storeys now," he said.

"There's a bit of wait and see with what's going on around the mall and the city centre.

"Once there is more activity around the mall with the reconstruction it might become a property of future interest."

Ipswich City Council has previously said a link between Bell St and Ipswich Mall would be one of the first things done as part of the redevelopment.

The Bell St site is listed on Raine and Horne Commercial as "completely flood-free in 2011".

"This offering has unlimited and flexible potential at a super competitive price," the description reads.

Acting Mayor Paul Tully has previously said construction on the library, council administration building, and civic space at the river end of the redevelopment would be finished by late 2019.

Anna Hartley

Originally published as REVEALED: Future of Ipswich CBD hotel still uncertain