City of Launceston Council has formally signed a term sheet with local consortium Birchalls Build Co, comprising S. Group and Tas City Building – paving the way for the long-awaited redevelopment of the iconic Birchalls building in the Brisbane Street Mall.
The agreement represents a key milestone in transforming the dormant heritage site into a vibrant mixed-use precinct featuring 21 apartments, six micro food and beverage tenancies, two larger commercial spaces, and a new public thoroughfare connecting the Mall with Paterson Street Central Car Park.
The Council says the $15 million project will retain and restore the building’s historic façade while introducing contemporary inner-city housing, activated public spaces, new amenities including public toilets and a parenting room, and a children’s play area in the Mall.
Mayor, Matthew Garwood said the signing of the term sheet signalled real momentum for one of Launceston’s most anticipated redevelopments.
“Birchalls has always been one of those places people talk about — a stunning old building with so much history that’s just been sitting there waiting for its next chapter,” Mayor Garwood said.
“This agreement is that turning point. It’s about bringing energy and life back into the heart of our city with more people, more food, more conversations and making sure this site becomes part of Launceston’s story again.
“Council made a really deliberate choice to step in when they did, purchasing Birchalls so it wouldn’t keep slipping into decline – and now we’ve secured a deal that benefits the community long-term through renewed activation in the mall, new homes, more vibrancy, and future rate returns once the apartments are sold.
“This is exactly the kind of smart urban renewal our 10-Year Strategic Plan talks about. Creating spaces where people want to live, visit, and invest,” he said.
Under the agreement, the Council will transfer the site to Birchalls Build Co and provide a short period of rates relief that ends once the apartments are sold.
“These concessions make the project stack up financially — and more importantly, they unlock a public asset that’s currently sitting idle,” Mayor Garwood said.
“It’s a pragmatic, forward-looking decision, and the kind of move you see from governments that understand the bigger picture.
“It’s about community outcomes, not just the bottom line; the same thinking that saw us transfer York Park to enable the $130 million Devils stadium development.
“It’s about investing in Launceston’s future.”
S. Group Director and Birchalls Build Co spokesperson, Sam Haberle said the redevelopment was more than a decade in the making and one his team was personally invested in.
“We’ve dreamed about what this building could become,” Mr Haberle said.
“Our vision has always been to create a north-south connection through Birchalls from the Mall to the car park, with food, drink, art and greenery bringing that passageway to life.
“The building’s historic façade will be maintained, with the addition of 21 high-quality apartments at its rear offering affordable, connected living for those who want to be part of the city’s heart.
“We’ll also activate the precinct early with the addition of a small public playground and temporary mobile food offerings during construction so people can see and feel the energy returning to the Mall before the full project is complete,” Mr Haberle said.
“As the old Birchalls’ slogan says – there’ll be something for everyone.”
Birchalls Build Co. expects to commence construction in mid-2026, with an estimated two-year build timeframe.
The project will be developed to the highest building classification standards due to its height and complexity within a heritage environment – something Mr Haberle said his team was well-versed in delivering across similar inner-city projects.
Mayor Garwood said the redevelopment represented the kind of bold, community-minded investment that was shaping Launceston’s next chapter.
“It’s about doing the right thing for the right reasons — transforming a dormant site into homes, jobs and energy in the centre of our city.”
