$9 million Glen Iris record setting trophy home resold at $8.05 million

$9 million Glen Iris record setting trophy home resold at $8.05 million
$9 million Glen Iris record setting trophy home resold at $8.05 million

The Mornington Peninsula developer Nicholas Smedley has reportedly paid $950,000 to walk away from settling on his $9 million home acquisition in Glen Iris.

Smelly had handed over his $900,000 deposit and more recently an additional $50,000 to cancel the 12 month delayed settlement deal, Nine Entertainment has reported.

It was accompanied by another buyer agreeing to purchase the Fairview Grove house for $8,050,000 – which ensured the vendor still received the originally contracted sum of $9 million.

It was sold at a private auction last May setting a record price for the suburb which had stood at $6.55 million since 2011.

It had been listed with $7 million to $7.7 million price guidance through RT Edgar Mark Wridgway who did the Saturday auction ahead of its Monday's scheduled expression of interest closing deadline.

Word of the price leaked out given the attendance of buyers' agents representing some of the six active bidders.

The 4 Fairview Grove, Glen Iris offering was a Christopher Doyle-built period home, renovated around a decade ago, on its 2000 square metre block with tennis court.

The property last sold 20 years ago at $1,178,000.

“The pre-auction shenanigans and the auction itself was a masterclass in manipulation, momentum and marvel,” one buyers' agent said, as reported by Property Observer last May.

Work recently stopped at the Continental Hotel project in Sorrento on the Mornington Peninsula as developer Steller, headed by Nicholas Smedley and Simon Pitard sought funding to continue the joint-venture project it started last year with hotelier Julian Gerner.

The developer behind the $80 million project to restore the 143-year-old heritage-listed limestone hotel noted initial site works had recently been completed, "with further works slated to commence later this year", the company said in a statement.

"Continental Hotel Group is currently in the process of securing senior construction funding to finance the next stage of construction and is in discussions with major funders to secure this finance. Funding is expected to be secured by Q3."

The project will create a 100-room luxury hotel, dining and events centre.

"Construction funding for the Continental Hotel redevelopment has not fallen through," the company said.

Steller said the crane erected on site would remain in place for the next stage of work.

"Continental Hotel Group is committed to delivering the Continental Hotel as a world-class luxury hotel and hospitality venue that will attract visitors to the Peninsula year-round despite the shift in initial project timelines due to the current market," the company said.

It has been reported Smedley and Pitard are set to dissolve their business partnership having boasted a $4.2 billion pipeline of residential, mixed-use and commercial projects.

A spokesman said there was no connection between the abandoned house purchase and the plan by Smedley, a son of the late business leader Peter Smedley, to dissolve the partnership with Pitard.

"It is unrelated to what is going on with Steller," the spokesman said.

"He decided not to proceed for personal reasons and has retained the (exisiting) family home.

"The decision not to proceed was not based on a lack of funding."

Stellar was founded in 2006 by Smedley and Pitard.

Wridgway confirmed the Glen Iris property had resold before the 12-month settlement that was due to happen this week.

"Purchaser A wanted to get out to pursue other opportunities," Wridgway said.

"I found Purchaser B. We reduced the price due to market forces."

The alternative purchase happened at an unspecified date earlier this year.

Smedley removed a caveat placed over the Fairview Grove home in February.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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