Sorrento’s iconic, heritage-listed Continental Hotel hits the market

Colliers International predicts hot contest for prime Mornington Peninsula development opportunity

An outstanding investment and development opportunity to bring new life to Sorrento’s iconic Continental Hotel is expected to attract keen interest from a diverse range of buyers.

Colliers International’s Guy Wells and Trent Hobart have been appointed to sell the iconic Continental Hotel at 1-21 Ocean Beach Road and an adjoining site at 23 Constitution Hill Road
in Sorrento. 

Hotelier Julian Gerner purchased the property from the Di Pietro family following a sales campaign in 2015. Mr Gerner has obtained planning and heritage approval for an
extensive redevelopment of the 144-year-old heritage-listed hotel, the largest limestone structure in the Southern Hemisphere.

“The Continental Hotel redevelopment is a major undertaking, in a seasonal location and requires a respectful and detailed restoration,” Mr Gerner said. “This has created some complexity around commerciality and funding. Due to increasingly difficulty market conditions, I have resolved to take the project back to market.”

For sale by International Expressions of Interest, the offering comprises 4,482sqm over two titles with Commercial 1 zoning. There is 38.76m frontage to the busy Ocean Beach Road retail strip
and 69.6m to Constitutional Hill Road.

Heritage restoration and basement works have commenced, while the planning approvals provides for mixed use development capitalising on the site to provide a hotel, public bar,
restaurants, multiple function rooms, café and two penthouse apartments along with parking for 114 cars.

Mr Wells said the Continental Hotel was one of the most well known properties in Victoria, situated within an ever-popular and growing town on Melbourne’s popular Mornington Peninsula.

“This is a rare chance to be the custodian of an iconic Victorian landmark and leave a legacy in one of the state’s most popular and frequently visited beachside tourism hot spots,” he said. “The proposed development will see the existing heritage hotel retained and celebrated.”

Mr Hobart said: “The hotel has been closed for over two years now and the site has been a source of much interest and discussion by industry participants, local residents and visitors to Sorrento. 

“Following the recent multimillion dollar upgrade of the Portsea Hotel, the Continental presents the next opportunity. The existing plans and permits provide for a primarily hotel focussed development in keeping with the heritage nature of the site. 

“The rear portion of the land could be repurposed for residential apartments (STPA) in line with previous development proposals.” 
 

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Guy Wells

Director, Transaction Services | Hotels

Melbourne CBD

Guy has over 10 years of property experience with the primary focus over this time on the Hotel and Student Accommodation market originally in the valuation division and more recently. Guy qualified as a valuer in April 2011 and specialised in the valuation of hotel and leisure assets providing valuation and consultancy advice for a variety of property classes including accommodation hotels, gaming venues, pubs, clubs, motels, tourist parks and reception centres until early 2014. 

Since then Guy has specialised in the the hotel and student accommodation sectors as a Sales agent with a broad base of experience in the sales of pubs, motels, hotels, and student accommodation assets. Guy has been actively involved in the growth of the Student Accommodation sector across Australia particularly within Melbourne transacting a number of sites to a wide variety of major operators.

In addition to traditional real estate sales, Guy undertakes Hotel Management Agreement negotiations having worked for Salta Properties (Hotel Indigo - Docklands), Vicinity Centres (Hotel Chadstone - M Gallery by Sofitel) and Century Group (St Regis Melbourne) amongst others.  

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Trent Hobart

Director

Melbourne CBD (Residential)

Trent brings unrivalled market knowledge: He is Director of Residential City Sales and has been involved in over 50% of all City of Melbourne developments in the last five years.  He has been involved in Melbourne’s residential and commercial real estate market for 15 years. Over this time Trent has specialised across numerous professions including sales, development and valuations. Trent joined Colliers in 2014, having previously worked for more than eight years as a Director of Development Valuations at CBRE.  During this time, Trent developed key relationships with property developers, Australia wide and internationally.  In 2016 Trent transacted 25 development sites with a total value of over $850,000,000.

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Laura Phillips

Associate Director | PR & Communications

Melbourne CBD

Part of the Australian media landscape for 10 years, with a background in newspaper and magazine journalism, including property reporting. 

Fostering strong relationships with property and business journalists and editors across national, state and local media, from newspapers and online publications to television and radio.

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