Signalling the end of a complex period and unforeseen developments, hotelier Julian Gerner has secured arrangement to retain ownership of the iconic Continental Hotel.
After acquiring the site in 2015, Gerner took on property developer Stellar as a partner in 2018, and an $80m restoration and development began at the historic Sorrento hotel.
Built 1875, the four-storey Continental – popularly known as The Conti – was slated to house Coppin’s public bar and bistro on street level, see restoration of Art Deco interiors to become a fine-dining restaurant on the second level, and three function rooms on the third level. It would also expand with the addition of 38 rooms of five-star accommodation on a lot behind the original Hotel.
But in July this year news erupted that Stellar was awash with debt and financial woes, and the incomplete construction was reluctantly put to market.
The high-profile project, already shrouded with community consternation, drew national media attention as the heritage-listed building sat dormant, seemingly exposed to the weather.
Its future looked back on track when in September it was announced LBA Capital would acquire the site for $21 million, and resume the approved works, but earlier this month “serious concerns” were raised over LBA’s ability to meet the October settlement.
A deal struck this week means Gerner will retain ownership after all, bringing support from Heritage Victoria and the Mornington Peninsula Shire, and renewed enthusiasm.
“I have negotiated an agreement to deliver on the vision to restore, renovate, protect and preserve the 1875 ‘Marvellous Melbourne’ hotel for the Sorrento community, all Victorians, interstate and overseas tourists for generations to come,” announced Gerner.
“A comprehensive and compelling investment Information Memorandum is being finalised and I am confident that required funding will be secured imminently.”
The ambitious hotelier turned developer says he will be looking to high net worth individuals and families to share in the result, with a prospectus due to be released by the end of the month.
The new ownership entity is called ‘The Ocean Amphitheatre Company’ – in honour of George Coppin, who built the Continental and developed the township of Sorrento.
Recommencement of construction is expected to begin after Australia Day 2020, and works have actually expanded with the acquisition of an adjacent property to create a site of more than 1.5 acres on Constitution Hill. A series of pending and new planning applications are to be consolidated.
The location will become a world-class hotel resort, as well as a wellness centre, car parking, commercial offices and a staff accommodation facility, with the project expected to cost around $100 million and bring around 200 permanent jobs and an economic windfall in Sorrento.
An information session is planned at Sorrento Community Centre in November that will update the community on the Hotel’s future.
“I am relieved, proud and more enthusiastic than ever to complete the development of this wonderful Victorian icon,” offered Gerner.
