Continental Hotel deal in doubt as developer assets frozen

The assets of Continental Hotel’s new developer have been frozen casting doubt on the future of Sorrento's landmark hotel once again.

Developer Demetrios Charisiou's LBA Capital had $108 million in assets frozen after its South Korean-based financiers alleged the developer breached its loan obligations. The setback has occurred shortly after signing a $21 million contract to take over the heritage-listed hotel.

The Continental transaction was due to settle next month.

The Continental’s redevelopment has been problematic for owner Julian Gerner, with the latest drama following on the heels of the unexpected collapse of his joint partner in the project, Steller.

That incident forced Gerner to sell the hotel midway through its $80 million redevelopment.

“This is just another speed hump for me. It’s been a bumpy ride for sure. I was aware there were issues [with LBA] and I have been trying to move heaven and earth to find an alternate solution,” Gerner told The Age.

Sheridan Randall, 21^st September 2019