THE Ambassador Hotel function centre is being demolished but the site is back on the market after a sale at auction late last year fell through.
Winning bidder Harry Matsoukas said he was “not involved with that any more” when contacted by The Times last month.
Lender the Jadig Group repossessed the property at 325 Nepean Highway late last year after previous owner Joanna Kordos, who had planned to build 37 apartments at the site, did not make loan payments.
Jadig Group managing director Jack Gringlas said the company had decided to demolish the function centre since Frankston Council had grown increasingly frustrated with repeated failures by Ms Kordos to tear down the building, regarded as an eyesore and magnet for drug users.
“I took the view that if we have to put it back on the market it’s going to be much more saleable as a vacant block,” Mr Gringlas said.
“It’s quite a complex demolition because of the integration with other buildings. I think a number of potential purchasers were worried about actually doing that job so we formed the view we would get a price that was sufficiently better than the old price because anyone buying it would have had to demolish it anyway.”
Mr Gringlas said the Jadig Group is in negotiation with several potential buyers and are looking for about $2.5 million to sell the site.
“We’re happy to sell it subject to the demolition … otherwise we’ll put it on the market again once the demolition is completed.”
The selling agent is Max Baude of KBL Commercial.