Continental Hotel back on the market after years of uncertainty
A heritage-listed hotel in Sorrento has been put back on the market for a second time in 12 months following a series of financial mishaps.
The Continental Hotel has been put up for sale following a decision by the Supreme Court of Victoria.
Hotelier Julian Gerner bought the hotel in 2015 with the intention of developing the site. But after difficulties finding finance for the project he was forced to put it on the market with a planning permit in place two years later.
That sale was cancelled after Gerner struck a deal with now collapsed developer Steller to go ahead with redevelopment of the site. Following the collapse of Steller last year, the hotel was sold to LBA Capital for a reported $21 million.
But financial troubles for LBA resulted in it unable to settle, leaving Gerner to take on the development alone.
However, a decision by the Supreme Court to end that contract and release LBA’s deposit has left the property under the control of receiver Petr Vrsecky, partner at PKF Melbourne, who has been appointed by Manda Capital Holdings, which holds the first mortgage on the property.
“We are pleased and relieved the matter has been brought to a head, and that we can now move forward with the sale of such an illustrious property,” Vrsecky said.
“The previous contract of sale is at an end, and we welcome all expressions of interest through Colliers.”
Colliers International’s Guy Wells will manage the expressions of interest campaign that likely to last until “mid to late April”.
Sheridan Randall, 12th March 2020
