Channel Nine bought Gatwick Hotel for $5 million less than reported, records show

Channel Nine paid $5 million less for St Kilda’s notorious Gatwick Hotel than previously believed, official documents reveal.

The settlement of the highly-publicised sale comes as proposed plans and artist’s impressions emerge, outlining the vision for the upcoming season of The Block.

Land title documents show a company owned by the network, Micjoy, paid $10 million for the rooming house at 34 Fitzroy Street in St Kilda. It was previously reported to have set producers back about $15 million.

Artist impression of The Gatwick Hotel Photo: Brenchley Architects

The Gatwick — which has a troubled history of violence, overdoses and murder — was first advertised for sale in December 2015, for between $11 million and $12 million. It was owned by sisters Yvette Kelly and Rose Banks, who have worked at the boarding house for decades.

The rundown property will be renovated into a boutique block of luxury apartments by contestants next year. 

The Block’s executive producer Julian Cress said the project would be unlike anything the show had done before, because of the unique character of the Gatwick building.

The Gatwick has been a place where troubled people could get a room for decades. Photo: Penny Stephens

“We have been working very closely with the council and with our own heritage consultants to ensure that we maintain the unique and iconic heritage elements of the existing building,” he said.

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“There’s no question that the Gatwick is in need of a renovation … the important thing is that the heritage elements of the building are preserved.

“We aim to do that and it’s documented in the plans that we have already submitted to the City of Port Phillip.”

The Gatwick Hotel has sold for $10 million. Photo: Penny Stephens

The proposed development involves the conversion of the hotel into a building with eight apartments; two-bedrooms on the ground level and three-bedrooms for the remaining homes.

There is also a plan for the existing roof to be partly demolished and a fourth floor built to include pergolas above outdoor terraces.

A car park area would have six car spaces and bicycle parking, and each apartment would come with secure storage. Plans for the Gatwick are currently being publicly advertised.

Locals have expressed concerns over minimum parking and design esthetics.

Alan West, who runs Facebook page Friends of St Kilda, said he believed the fourth floor extension was “totally out of keeping with the rest of the building”.

“To turn all those rooms into eight residence, you’re going to be knocking a lot of walls out,” he added.

The City of Port Phillip is no stranger to the popular renovation show. Last season, the contestants transformed an art deco former soap factory at 164 Ingles Street, Port Melbourne, into five deluxe-sized, high-end residences, including a lavish roof-top garden.

The Block had also put its stamp on a former warehouse in Albert Park, and a former hotel and rundown terrace houses in South Melbourne.

Filming for the 13th season of The Block, set in Elsternwick, wraps up this weekend and the show premieres on Sunday, July 30.