THE remains of the former Ambassador Hotel function centre in Frankston sold at auction for $2.24 million at a mortgagee auction last week.
Developer Harry Matsoukas was the last man to put his hand up at the auction last Thursday (10 September) to buy the derelict function centre after bids began at $2 million in the forced sale.
Former site owner Joanna Kordos, the latest in a line of owners, had borrowed money from the Jadig Group to buy the Ambassador function centre and planned to build 37 “luxury apartments” at the 325 Nepean Hwy address.
The Times understands mortgagee Jack Gringlas was forced to repossess the property since Ms Kordos failed to make agreed repayments.
At last week’s auction Mr Gringlas said Ms Kordos had threatened to take out an injunction to prevent the sale of the Ambassador function centre but this did not happen.
Ms Kordos did not return several calls asking for comment.
The Ambassador’s new owner told The Times he bought the site on behalf of a property development consortium and while the group intends to build apartments the designs will be different from Ms Kordos’ doomed attempt to construct 37 luxury apartments.
“We’ll definitely develop it but we’re not really sure until the boys commit to it,” Mr Matsoukas said.
He said some more information about the consortium’s plans should be available within the next week.
The adjacent chapel at the Ambassador Hotel is also on the market for sale.
Selling agent Max Braude of KBL Commercial said he hoped the latest sale of the function centre could lead to one of Frankston’s most high-profile eyesores finally being fixed.
“We hit the reserve [$2 million] on the first bid and the vendor is happy,” he said.
Frankston councillors reluctantly agreed to grant Ms Kordos a 12-month extension on the planning permit to build apartments at the Ambassador Hotel site in March after the former owner missing deadlines to begin construction work at the Nepean Hwy site.