UTAS splashes the cash in CBD property buying spree

UPDATED: The University of Tasmania has splashed tens of millions of dollars on properties in the Hobart CBD in just the past four years. See what they bought and how much they paid.

The new UTAS accommodation complex in Brisbane St. Picture: SAM ROSEWARNE

THE University of Tasmania has splashed nearly $80 million on several properties in the Hobart CBD in the past four years alone.

As the institution looks to find efficiencies, arguing it needs to save $30 million a year to survive, property reports show UTAS has spent big on inner-city sites since 2015.

This included $9.8 million across several addresses on Argyle St, all bought in August 2015, and about $8.8 million across properties on Melville St, which is now university accommodation.

The MidCity Hotel, on Bathurst St, cost the university $25.85 million and was purchased early last year.

The former Forestry Tasmania headquarters in Melville St.

UTAS was this week revealed as having paid $15 million for the former Forestry Tasmania headquarters.

The Forestry building was purchased in preparation for a potential campus move from Sandy Bay to the city, a UTAS spokesman said.

MORE UTAS PROPERTY PURCHASES:

UNI SHELLS OUT TOP DOLLAR FOR CITY PROPERTY

UTAS BUYS CBD HOTEL TO HOUSE STUDENTS

UTAS ACQUIRES HOBART MIDCITY HOTEL

THEATRE ROYAL HOTEL ADDED TO UTAS PORTFOLIO

He said the purchase of the Forestry building was “financially prudent” as it would prevent the university from potentially being forced to negotiate an overheated commercial property market in the future.

“We have reached a point in the ongoing renewal of our facilities in southern Tasmania where, following consultation, the University Council needs to set a broad direction about whether we move towards a city centric campus, or whether we continue to have a distributed model across central Hobart and Sandy Bay,” the UTAS spokesman said.

“We will begin our conversation with the university community about these matters soon.”

UTAS purchased the Fountainside Motel in December last year.

UTAS bought Fountainside in December for $18 million in response to more students applying for a university bed than the institution could provide. Hobart’s historically low rental vacancy rate contributed to the problem. Renovations at the MidCity and Theatre Royal Hotel will help add further capacity to the university’s existing 1100-bed portfolio.

A UTAS spokesman said the institution had paid a “fair market rate” for Fountainside. Settlement on the property occurred this week, he said, with students to move in from next Monday.

The spokesman said: “Any property purchase by the university is subject to appropriate checks and controls.”

UTAS received millions of dollars in Federal Government funding for its Melville Street accommodation under the National Rental Affordability Scheme.

The scheme is aimed at helping low and moderate income households find housing.

The Department of Social Services said in December that UTAS had met its requirement to give priority to domestic students for that property in the past two financial years.

The MidCity Hotel will be turned into accommodation for university students. Picture: RICHARD JUPE