Sorrento’s Continental Hotel for sale as “clean proposition” by receiver PKF
Sorrento’s Continental Hotel on Victoria’s exclusive Mornington Peninsula is on the market for the third time in four years.
Being promoted by the receiver as “a clean proposition”, it is backed by a permit for an $80 million mixed use redevelopment which is part constructed.
The listing follows a Victorian Supreme Court verdict yesterday setting aside a $21 million contract of sale to LBA Capital and releasing an associated deposit to Manda Capital Holdings which held the first mortgage.
Today, PKF partner Petr Vrsecky announced it was appointed receiver by Manda to sell the historic property.
Mr Vrsecky and colleague Jason Stone have engaged Colliers International as marketing agency.
The brokers which last year publicly offered the site for sale and found LBA Capital – Guy Wells and Trent Hobart – will this Autumn be back showing buyers around 1-21 Ocean Beach Road.
No guide price is being quoted however, being a receiver sale, it is anticipated an offer close to $21 million would be on the radar.
Last October, publican Julian Gerner, who directed Continental Developments Pty Ltd which purchased Continental Hotel in 2013 on a long settlement, announced plans to build a $100 million mixed-use complex with offices on the hotel block and neighbouring parcels: a former council car park at 23 Constitution Hill Road (which Colliers is including as part of the sale) and a residential parcel at 12 Riley Lane.
This ‘commercial only’ idea replaced CHD’s $80 million mixed-use proposal mooted between 2014-2017 which included apartments (but wouldn’t have required 12 Riley Lane).
The Sorrento hotel made headlines last April when construction of the initial project stopped, shining a light onto Steller which co-invested in the redevelopment with CHD in late 2017.
Steller was put into receivership three months later – its substantial property portfolio now in the process of being sold-down.
Continental Hotel: the 2020 marketing campaign
PKF is promoting the offering as a trophy investment.
It also has enormous redevelopment prospects: CHD able to achieve a permit for a seven-level structure on part of the 4482 square metre holding.
The Victorian Italianate hotel was built in 1875 from localised quarried limestone by businessman, philanthropist and politician, George Coppin.
It is said to be the only four level sandstone structure in the southern hemisphere.
“We are pleased and relieved the [LBA Capital] matter has been brought to a head, and that we can now move forward with the sale of such an illustrious property,” Mr Vrsecky said.
“The previous contract of sale is at an end, and we welcome all expressions of interest through Colliers.
“The hotel is a great opportunity for anyone seeking to continue the tradition of an iconic venue serving one of the most prestigious and cosmopolitan communities in Victoria, all within walking distance of pristine beaches.
“While it has since undergone various changes, it remains an undisputed gem of the seaside Sorrento community, situated on a prominent site at the entry to the town, and a fantastic opportunity for the right owner”.
