Conti Hotel owner questions contracted buyer LBA Capital’s financial stability
The multimillion-dollar sale of Sorrento’s trouble-plagued Continental Hotel is hanging in the balance, with the owner revealing it has “serious concerns “ about the contracted purchaser ahead of this month’s settlement.
South East
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The multimillion-dollar sale of Sorrento’s historic Continental Hotel is teetering on the edge of falling as the purchaser’s financial stability hangs in the balance.
The landmark hotel’s owner, Continental Developments managing director Julian Gerner, said recent developments had raised “serious concerns” about contracted purchaser, LBA Capital, ahead of this month’s settlement.
The beloved 1875 limestone hotel was listed for sale by Colliers International after works on its $80 million redevelopment stalled mid-year after a period of uncertainty.
The Heritage Trust building reportedly sold for $21 million, but Mr Gerner said he was now “unsure that the purchaser will be able to meet their obligations under the contract of sale”.
The likely sale fail is the latest setback for the trouble-plagued hotel as its fate continues to hang in the balance.
More than 500 people packed out the Sorrento Community Centre to fight for the beloved hotel’s future in late June.
Nepean Conservation Group president Ursula de Jong said at the time 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 all right.’’
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.
Mr Gerner said he had informed all key stakeholders “of these developments” and continued to work closely with Heritage Victoria, Mornington Peninsula Shire Council and project consultants to “ensure obligations are met and the site is maintained appropriately”.
“Whilst this produces further complexity to an already complex transaction, I remain passionately committed to the delivery of this extraordinary project,” Mr Gerner said.
MORE: COMMUNITY FEARS FOR BELOVED PENINSULA HOTEL
CONTINENTAL HOTEL WORKS GRIND TO A STOP
Mornington Peninsula Shire planning and building director David Bergin said the council was keeping an eye on the situation.
“(The) council continues to monitor the site and work with the private building surveyor and Heritage Victoria to ensure the building is protected and there is no risk to public safety,” Mr Bergin said.
Site offices were removed and workers were nowhere to be seen at the iconic site as developer Steller went into receivership.
LBA Capital did not answer calls from the Leader.