JAC Group, which Mr Chromy established, confirmed the purchase yesterday.

The purchase includes the running of the 33 motel units, 39 apartments, the tavern with restaurant and bar, and the unused attractions in Launceston.

The sale will be settled with the receivers at the end of June, and the JAC group is remaining tight lipped about its site plans until then.

``The purchase is viewed as a long-term strategic asset and redevelopments of the unused areas will be considered in the near future,'' the group said.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the sale was the best news he'd had heard all week.

``Josef Chromy and the Chromy group have a wonderful track record of developments throughout this region,'' Mr Bailey said.

``He's a very passionate man about tourism and this part of the state and I look forward to what he's going to do with it.

``It was an absolute gem for Launceston when I was younger.''

Tasmanian Tourism Industry of Tasmania chief executive Luke Martin said the location was a prime site for tourism in Launceston and hoped future plans would ``not just be replicating cultural experiences'' but would give the best type of tourism development or experience for the Launceston tourism market.

In its peak, the Penny Royal Gunpowder Mill attracted a record 4666 visitors in one day.

The site received a number of facelifts after it was initially sold in 1985, but finally shut its doors in July 2006.