The heartbreaking saga of the restoration of Sorrento’s magnificent Continental Hotel has reached another milestone, with prominent Melbourne developer Trenerry Property Group ready to settle on the latest deal.
Bought years ago by Melbourne hotelier Julian Gerner, the four-storey limestone monolith overlooking Port Phillip Bay was built 1875 and is truly an icon of the region.
Unequipped with the capital clout for the massive transformation foreseen for the hotel, Gerner sought a sale but found partnership with Nick Smedley and Simon Pitard’s development company Steller.
An $80-million project was planned, approved and begun, which included a new residential development at the rear.
But mid-2019 Steller’s founders abruptly dissolved the partnership, leaving The Conti’s future unassured and a massive hole in the ground beside it.
The subsequent sale campaign through Colliers International found a new buyer in another developer, LBA Capital, for $21 million, but the company was unable to complete settlement.
Gerner fought to resume control of the project, but last October primary lender Manda Capital Holding P/L appointed receivers PKF. Collier’s Guy Wells and Trent Hobart were appointed again to market the divestment.
It has now been revealed Trenerry has signed an unconditional contract paying $14.5 million for the honour of resuming the heritage project. Creditors are said to be still owed in the region of $700k.
The company is currently constructing West Melbourne’s $345 million West End project.
Colliers were contacted for further details but unable to comment.
