KCB Developments has signed the contract to the former Devonport maternity hospital site

KCB Developments Pty Ltd has agreed to purchase the property for $667,000.

The sale price is above the independent valuation provided to the council for the site in March this year, following the demolition of the former hospital building.

KCB Developments is owned by local businessmen Chas Kelly, Michael Baxter and Peter Cross.

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Acting Mayor Annette Rockliff said she was excited that a development would finally be going ahead on the site, which has remained undeveloped for more than 20 years.

“Council understands that KCB has some exciting plans for the land and I look forward to the result being one the city can be proud of,’’ she said.

“It is also pleasing that council has been able to secure a price greater than the valuation.

 “Council understands that some people will criticise the fact that the site has been sold for $283,000 less than council purchased it for.”

Several previous proposals to develop the property had not come to fruition with the council finally purchasing the site in September last year for the express purpose of clearing it and making it a greenfield development site. 

The demolition of the hospital was completed by the council in February from funding provided by the State Government. 

Spokesman for KCB Peter Cross said the company would outline its plan for the site soon.

“We will be working closely with council to ensure that the development meets all the required planning elements,’’ he said.

Mr Cross said he hoped work would begin on the development before the end of the year.

The hospital site was advertised for sale by tender with tenders closing on Friday 22 June 2018.

Local real estate agent Michael Burr handled the sale and said he was delighted that the site would finally be redeveloped.

“After many years of proposals for the site failing to come to fruition, I am delighted that a local developer will now take charge and I am sure the planned redevelopment will offer long-term benefits to the city and help to revitalise the area,’’ Mr Burr said.