WORK has stopped on the controversial $80 million redevelopment of the Continental Hotel at Sorrento while the developers chase finance.
Joint-venture partner Julian Gerner said last week a “gap between funding arrangements” had forced the shutdown at the historic watering hole before Easter. He said the amount being sought was around $40 million.
Mr Gerner said he was being “fiscally responsible” in waiting until the money had been secured before continuing work, but gave reassurances that “all is going well”.
He and property group Steller are redeveloping the 1875 four-storey limestone building into bar, function, fine dining and residential areas – along with two $10 million-plus penthouses at the rear.
He said revised permits had been approved by Mornington Peninsula Shire Council. “We had planned to do half hotel and half residential, but now it will be 90 per cent hotel and the two penthouses with pool and entertainment areas on top,” he said.
“Originally we had four top-floor apartments at the rear with decking but instead we’re building the penthouses. They will be pretty spectacular with views from tower-height.”
He said the first stage of the ground floor hotel and outdoor trading areas are expected to be finished by spring, with the project finished by 2021.
