Steller goes into receivership, Conti Hotel up for sale

A major Melbourne property developer has gone into receivership, with the company’s downfall killing off a huge $80 million refurbishment of a landmark Mornington Peninsula hotel. See which apartment building and redevelopment projects are now in doubt.

Julian Gerner and Steller chief executive Simon Pitard in front of the Continental Hotel.

A major Melbourne development company has folded, plunging the future of apartment buildings and redevelopment projects into doubt.

Steller — which specialised in mid and large-scale residential and commercial apartment complexes in Melbourne’s southeast and had $4 billion worth of projects in the pipeline last year — has been placed into receivership.

McGrathNicol announced today it had been appointed the receivers of Melbourne-based Development Steller Pty Ltd and a number of its related entities and assets.

A source told the Leader that the Hampton Green project and Steller’s 1543 sqm site at 200-204 Wells St, South Melbourne, were part of the receivership.

It comes as Sorrento’s landmark and beloved Continental Hotel was listed for sale by Colliers International. The hotel’s proposed $80 million redevelopment was jointly managed by Steller co-director Simon Pitard.

The appointments were made by OCP Asia, a Hong Kong and Singaporean-based financier which provided funding to the Steller group, secured by the assets over which the receivers have been appointed.

McGrathNicol partner Keith Crawford said the receivers were undertaking an urgent financial assessment of the assets under their control.

“We’ll be working constructively with all stakeholders, including financiers of individual properties, to secure the best possible outcome for all parties,” Mr Crawford said.

STELLER ABANDONS MOORABBIN WAREHOUSE

STELLER SELLS OFF ASSETS, FIRES WORKERS

“OCP Asia intends to support the assets over which receivers have control during the receivership process, including via the provision of additional funding to ensure the assets can be maintained while options for recapitalisation, development and/or disposal are explored.”

The source also told the Leader that Steller had not missed any payments.

Julian Gerner and Steller chief executive Simon Pitard at the Continental Hotel building site.

It comes just weeks after the once-leading development company started selling off its assets and winding down the company when directors Mr Pitard and Nicholas Smedley dissolved their partnership.

Steller’s website still states the group has more than 50 projects on the go, with many under construction including an approved eight-storey complex at Brighton Rd, St Kilda and an 11-storey complex at Chesterville Rd, Cheltenham.

Three of its development sites have already been sold off to new buyers and the private group also planned to sell off the former Greyhound Hotel in St Kilda, which it snapped up last year.

Another source previously told the Leader that people in the industry were scrambling to find other developers to take over dozens of unfinished projects across Glen Eira, Bayside, Kingston and beyond — and he said buyers had been left hanging.

Simon Pitard has ignored all of Leader’s requests for comment.

OCP Asia declined to comment.

NOT-SO STELLER SITES

SITES MANAGED BY STELLER

■ Swan and Coppin Streets Mixed Use Development at 314-320 Swan St and 236 Coppin St, Richmond

The $15 million eight-storey development under construction will include 78 offices and 123 shops.

■ Greyhound Hotel, St Kilda

The private group is selling off the former Greyhound Hotel in St Kilda, which it snapped up last year.

■ A high-rise development site at Wells St, South Melbourne

Currently listed for sale by Savills, the 1543sq m site has an approved permit for a 20-storey, 174-dwelling development.

The Greyhound Hotel on the day it was demolished. Picture Yuri Kouzmin

PROJECTS UNDER CONSTRUCTION BY STELLER

■ Hampton Green project: 514 Hampton Street, Hampton.

Comprising 19 residences across four floors, Hampton Green boasts a “contemporary yet timeless façade” and “ageless aesthetic, interiors feature light oak flooring and marble finishing, while soaking up an abundance of natural light”.

■ The Hamilton: 16 Hamilton Street, Bentleigh.

Four-storey, 29 dwelling apartment complex near Bentleigh railway station.

■ Jade Bentleigh: 82-84 Mitchell Street, Bentleigh.

Four-storey, 23 dwelling apartment complex including 27 car spaces.

■ Barker Maude: 15 Maude Street, Cheltenham.

Four-storey, 53-dwelling apartment complex including 26 bike spaces, 74 car spaces near Cheltenham Station.

An artist’s impression of Steller apartments in Maude St, Cheltenham.

COMMUNITY FEARS FOR BELOVED PENINSULA HOTEL

More than 500 people packed out the Sorrento Community Centre on Sunday to fight for the future of the beloved and historic Continental Hotel.

The landmark hotel has been listed for sale by Colliers International, after work on an $80 million redevelopment came to a halt last month.

Construction had been underway for stage one including a new bar and bistro, fine dining and function area slated to open this September.

Stage two featuring a wellness centre, 60 hotel rooms along with a lobby, cafe, swimming pool and whisky bar was slated to open in March, 2020.

However residents fear the future of the hotel is now in jeopardy.

Development on the Continental Hotel in Sorrento has stalled. Picture: Penny Stephens

Nepean Conservation Group president Ursula de Jong said authorities should stop dithering and take immediate action to protect the historic building.

“We want Heritage Victoria, the State Government and Mornington Peninsula Shire Council to take some responsibility for it,” she said.

“Everyone is saying someone else is responsible. They need to be proactive and not wait until something happens. We need to make sure it’s alright.’’

Ms de Jong said large parts of the building were exposed due to the unfinished works and she called on residents to be vigilant and immediately report any damage to authorities.

“The west and south sides are particularly vulnerable,’’ she said.

Ms de Jong also read a statement from Heritage Victoria executive director Steven Avery at the Sunday meeting, saying Heritage Victoria had inspected the site in May and temporary works to secure the building had since been completed.