TasTAFE hotel plan stalls as developer's companies enter administration
Companies behind a TasTAFE site redevelopment in Launceston have entered administration. This puts the approved hotel and apartments at risk.
A landmark Launceston redevelopment is now in serious doubt. Multiple companies run by developer Andrew McCullagh have entered administration.
Cyril Megtap Developments holds the former TasTAFE buildings on Wellington Street. It was placed into administration in March 2026.
Its sole shareholder, Barnaby Wellington and Spencer Property Pty Ltd (BWS), followed in August. Several other McCullagh-directed firms also entered administration.
The project has council approval. It would change the site into a five-star hotel and residential precinct.
As recently as August, McCullagh said he was confident about raising funds. He wanted to start construction early next year.
A receiver's report shows Cyril Megtap owes creditors millions. McCullagh disputes these figures as false.
He says funding disputes with lenders are being resolved. He says funders are ready and refinancing will complete soon.
Council approved the first stage (residential apartments) in late 2023. It approved the luxury hotel component in 2024.
- Wellington Street, Launceston
- Site location
- Remara
- Primary lender
Why it mattersA major Launceston development that was supposed to bring jobs and tourism is now stalled. The future of the site is now uncertain.
AustraliaLaunceston residents lose a promised hotel and apartments; the city's CBD redevelopment momentum stalls while lender disputes play out.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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