An iconic Williamstown restaurant setting has been leased for 21 years in what has been described as a “once in a generation opportunity”.

Hobsons Bay council has leased the Williamstown Dressing Pavilion – known for a long time as Sirens restaurant and more recently as Shelly’s Beach Pavilion – to Bathing Pavilion Pty Ltd.

Shelly’s Beach Pavilion held the lease after Sirens restaurant was placed in to liquidation in 2014 to pay a tax debt, creditors and workers.

A spokesman for Bathing Pavilion said renovations would take place before an opening launch around August or September.

“We are very excited to be taking over such an iconic venue in Williamstown,” he said.

“Over the coming months we plan to totally renovate the interior and rebuild a deck to create a better connection with the beach, while protecting its heritage and ensuring the community can enjoy the space for many years to come.

“We look forward to being a meeting point for locals and a food and wine destination in the west.

“While I can’t reveal too much about the menu right now, I can confirm that we are working on an all-day menu across restaurant, bistro and take-away offerings.”

The Rotunda – the licensed kiosk on the same site – has been re-leased to existing operator Red Engine Group.

Sole director John Mousaferiadis said he planned to renovate the kiosk – which sells coffee, ice cream and fish and chips – but introduce changes on the upper level.

“I tendered for only my premises, not the pavilion,” he said. “They’ve renewed my 21-year lease.

“I was the original person who transformed it from an old derelict bandstand to what it is now.

“My plans are to continue as it is, but the cafe upstairs will be transformed and changed over the winter into Vietnamese food, which will specialise in just beef and chicken pho.”

Hobsons Bay mayor Angela Altair said the seaside venue was well loved by locals and Melburnians from far and wide.