Sorrento's Continental Hotel will remain in the hands of hotelier Julian Gerner, who will press forward with its troubled $100 million redevelopment, after striking a deal to retain the Mornington Peninsula venue.
Work stopped at the Continental Hotel project earlier this year after Melbourne-based developer Steller, headed by Nicholas Smedley and Simon Pitard, collapsed into receivership, leaving a gaping unfinished hole next to the iconic property.
Owner Julian Gerner was forced to put the unfinished project on the market striking a deal in September to sell it to another developer, Demetrios Charisiou's LBA Capital, for $21 million.
However, LBA Capital, which had its assets frozen by the courts following a dispute with its South Korean-based financiers, failed to settle on the 144-year-old heritage-listed limestone hotel, as was widely expected.
Gerner originally agreed to purchase the Continental Hotel from the Di Pietro family in 2015 for $12 million as well as a neighbouring site at 23 Constitution Hill Road for $1.98 million.
The hotel was built in 1875 and has the highest level of heritage protection due to its historical significance.
“I am relieved, proud and more enthusiastic than ever to complete the development of this wonderful Victorian icon,” Gerner said.
“A comprehensive and compelling investment information memorandum is being finalised and I am confident that required funding will be secured imminently.”
“I have briefed Heritage Victoria and the Mornington Peninsula Shire who are supportive of this latest development.”
Prior to the halt, the joint venture project it started last year with Julian Gerner was well under way, to create a 100-room luxury hotel, dining and events centre.
Stage one included a new bar and bistro, fine dining and function area slated to open late-2019.
The second stage featuring a wellness centre, hotel rooms, new lobby, cafe, swimming pool and whisky bar was anticipated early-2020.
The hotel's new ownership entity is “The Ocean Amphitheatre Company” named in honour of George Coppin who built the Continental and developed the township of Sorrento.
The development has expanded and includes the $2 million acquisition of adjacent property in 12 Riley Lane with a series of pending and new planning applications to be consolidated on the site of more than 6,000sq m on Constitution Hill.
At the rear of the Continental Hotel site is a large 18.5-metre-deep hole—above which the hotel stands—will be extended to allow for more car parking and a wellness centre.
“Required maintenance work is ongoing and an army of consultants are working tirelessly,” Gerner said.
The hotelier hopes to restart construction on the four-storey limestone pub after Australia Day next year.
