Melbourne’s Pentagon Group plans to move ahead with developing Silverwater Resort after snapping up the property for a bargain $25 million earlier this week.
The boutique property development group will increase the total rooms at the property to 200-plus after refurbishing and rebranding the 8.5 hectare property on the San Remo coastline opposite Phillip Island.
The property was previously listed by Alceon group in 2016 for $40 million.
Brian Rule’s Brico Group built the San Remo hotel in 2008 for $80 million through Silver Water Developments which went into liquidation during the global financial crisis.
Included in the most recent sale were 88 apartments and the respective business operations and resort management rights for a total of 172 keys.
The Silverwater acquisition follows the group’s June purchase of EBC Hotel & Leisure Fund’s Tasmanian hotel portfolio comprising the Old Tudor Hotel in Launceston, The Bayside Inn in St Helens and the Foreshore Tavern on the outskirts of Hobart .
Pentagon Group partners Vijan Patel and Pratik Sarsavadia said they plan to revamp the hotel before acting on an existing planning application and build the extra rooms in 2021.
“At the moment the basic plan is to refurbish the rooms and reband them with an international brand and then revamp the bar and restaurant,” Patel said.
“We recognise that the Silverwater Resort has the ability to attract large groups and function-related clientele and we look forward to further driving that aspect of the business.”
The resort also includes six conference and meeting facilities with a capacity for up to 500 delegates, food and beverage facilities, heated indoor and outdoor swimming pools, sports courts and a children’s playground.
CBRE Hotels’ Scott Callow and Wayne Bunz managed the sale, which included one of the state’s largest regional integrated leisure and conference facilities.
“Pentagon Group plan to continue the operations with a renewed focus on both corporate and leisure guests,” Callow said.
The nearby Phillip Island is well recognised for its natural attractions such as the Penguin Parade and popular surf beaches.
It is also home to the Phillip Island Racetrack that hosts the World Superbikes and Moto GP and the Australian V8 Supercars.