Ryman Healthcare says its proposed redevelopment of Moondah Estate near Mt Eliza on Victoria’s Mornington Peninsula into a retirement village and aged care home is important for the restoration of the historic building.

Ryman, which has already spent $800,000 restoring the property’s gatehouse, is seeking permission at VCAT to build the village with 82 aged care beds, 35 assisted living suites and 104 independent living apartments.

David Laing, Victorian Development Manager at Ryman (pictured), told News Corp papers that if its bid fails – and a new buyer cannot be found – the buildings will deteriorate over time.

“We’ve also had a number of issues with squatters and vandals getting into the buildings, including the mansion, so there’s also a risk they could be seriously damaged or destroyed by fire,” he said.

According to David, if the development is approved, the mansion’s exterior will be fully restored at a cost of between $8 million and $10 million.

“The inside of the mansion will be reconfigured and renovated to become the heart of the village community. It will house a range of shared amenities, including a café, bar, dining area, cinema, indoor swimming pool, gym, and hair and beauty salons,” he said.

The building may yet be rezoned by Council as green wedge, at which point permissible uses would include a place of worship, education, or leisure and recreation.

Moondah Estate was built in 1888 by the Grice family as a holiday home, before being sold to Sir Reginald Ansett in 1947 and turned into a luxury hotel. The state MP for Mornington, Liberal David Morris, is pushing for the Ryman project’s rejection; however, descendants of the Grice family want it to go ahead.