The Block's executive producer Julian Cress reveals The Gatwick Hotel makeover will lose millions

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'I'm the stupidest property developer in Australia': The Block's executive producer Julian Cress reveals The Gatwick Hotel makeover cost $25 million ...and will 'be lucky' to recoup $13 million of those costs

Published: 04:16 EDT, 23 October 2018 | Updated: 07:29 EDT, 23 October 2018

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The Gatwick Hotel was once known as a 'festering fleapit' - a cheap St Kilda rooming house that was a refuge for Melbourne's down and out.

But after its closure last year, the building has undergone a radical renovation for the current season of The Block, which saw it made over into a series of luxury apartments set to be auctioned in a matter of days.

However that makeover came at a cost - such a high cost, that the project will lose millions, according to statements made by Kate Langbroek on The Hit Network's Hughesy and Kate radio program on Tuesday.

'I'm the stupidest property developer in Australia': The Block's executive producer Julian Cress reveals The Gatwick Hotel makeover cost $25 million ...and will 'be lucky' to recoup $13 million

The radio personality met with The Block's executive producer Julian Cress to inspect the completed apartments.

During the course of the tour, Kate says that Julia called himself the 'dumbest' and 'stupidest' property developer and revealed the project was losing millions.

'At one stage he said, "I'm the dumbest property developer in Australia". When he told us how much money they will lose doing this block, [it was] quite amazing,' Kate said on air Tuesday.

Loss? The Block's latest project will lose millions, according to statements made by Kate Langbroek on The Hit Network's Hughesy and Kate radio program on Tuesday. Kate is pictured with co-star Dave Hughes (left)

Prompted to reveal hard figures by her co-host Dave Hughes, Kate went on: 'He said we bought it for 10 [million], we’ve spent 15 [million].

'That Block is worth 25 million. He said, 'We’re lucky we’ll get 13 million back'. Then he went: "I’m the stupidest property developer in Australia."'

Kate added: 'If you think about that, that’s not bad value if you’re in the market.'

New look: The radio personality met with The Block's executive producer Julian Cress to inspect the completed apartments

Oh dear? During the course of the tour, Kate says that Julia called himself the 'dumbest' and 'stupidest' property developer and revealed the project was losing millions

Prompted to reveal hard figures by her co-host Dave Hughes, Kate went on: 'He said we bought it for 10 [million], we’ve spent 15 [million]. 'That Block is worth 25 million. He said, 'We’re lucky we’ll get 13 million back'. Then he went: "I’m the stupidest property developer in Australia"'

Daily Mail Australia has reached out top Channel Nine for comment.

Before the makeover, The Gatwick stood run down and derelict, covered in dirt and grime.

A news.com.au report from May 2017 described the hotel as 'a place where you can be murdered in your room, robbed, bashed or offered a variety of drugs among the cockroaches, addicts and prison parolees.'

Big job: Before the makeover, The Gatwick stood run down and derelict, covered in dirt

A news.com.au report from May 2017 described the hotel as: 'a place where you can be murdered in your room, robbed, bashed or offered a variety of drugs

Graffiti was visible on parts of the exterior, as crumbling paint gave away the age of the 80-year-old building.

The Gatwick acted as a rooming house from the 1950s until its closure last year.

The newly-renovated apartments are set to be auctioned on The Block's season finale on Sunday night.