Skybarrel on Mt Buninyong hits market for $1.15m amid developer Lapilli La Mt Buninyong’s liquidation

A short-stay barrel-style home on the edge of an extinct volcano could be yours for a little more than $1.1m as its developer’s liquidation continues.

The Skybarrel at Mt Buninyong has been listed for sale at $1,150,000. Picture: Domain

A controversial piece of tourist accommodation in Victoria’s west is being sold for more than $1m as part of its previous owner’s liquidation.

The Skybarrel on the slopes of Mt Buninyong near Ballarat was, from early 2024, available for short-term accommodation with the unique drawcard of being perched “on the edge of an extinct volcano”.

Originally, the project was meant to include five double-storey barrels that would “scare the pants off people”.

When they were on sale before being built, each unit was expected to cost $1m with a leaseback agreement guaranteeing an 8 per cent return.

The Skybarrel at Mt Buninyong. Picture: Domain

But in 2021 the City of Ballarat rejected the plans by David and Manuela Penman’s Clifftop at Hepburn Pty Ltd to build six barrel cabins for short-stay accommodation on the land.

Despite the permit refusal, a single barrel was constructed under the definition of a dwelling.

The council later refused a similar application for “group accommodation” by Albert Park-based Lapilli La Mt Buninyong Pty Ltd.

Upon appeal, VCAT granted Lapilli a permit with certain conditions on January 17 this year and the council supported an amended proposal for eight flat-roofed single-storey rectangular buildings.

But on February 26, Lapilli entered external administration, alongside Camp St Daylesford Pty Ltd and Main & Camp Daylesford Pty Ltd.

The three companies have the same two directors – Andrew Donaldson, 58, and Wade Keenan, 48 – while Mr Penman owns a third of the shares issued by each.

Inside the Skybarrel. Picture: Domain

Now the Skybarrel has been listed for sale, with advertising boasting of the site’s development potential – subject to council approval.

Described in a listing as “architecturally daring” and “designed to embrace the ever-shifting beauty of the landscape”, the 4.05ha property on Lapilli Ln has an indicative price of $1.15m.

“A current permit allows for the addition of more villas (STCA), making this a ready-made foundation for a design-led accommodation venture,” the listing said.

“With power, septic, and Starlink already in place, the essentials are covered, leaving you free to shape the vision.”

Belle Property Daylesford real estate agent Natalie Fagan said there were few comparable properties.

The Skybarrel was managed by Discover Daylesford when it was operating as short-term accommodation.

Liquidator Cor Cordis was contacted for comment.