The Ambassador sold for $2.24m at auction, new owner wants to build apartments

THE troubled Ambassador function centre in Frankston has sold at a mortgagee auction for $2.24m, with the new owner promising to build apartments.

ambassador hotel

THE notorious Ambassador function centre in Frankston has sold for $2,240,000 at a mortgagee auction today.

Developer Harry Matsoukas opened bidding at $2 million before outbidding one other potential purchaser with a final bid of $2,240,000.

Mr Matsoukas told the Leader he wanted to build apartments at the derelict site, which is widely regarded as Frankston’s worst eyesore.

He indicated he would not act on former owner Joanna Kordos’ permit for a four-storey building with 37 luxury apartments.

“We will clean it up and put something nice (on the site). It will definitely be apartments,” he said.

Mr Matsoukas was unsure if he would buy the adjacent chapel at the sprawling site, which is also up for sale.

He said he would discuss this with business partners.

Mr Matsoukas said he had been seeking potential development sites before buying the Ambassador function centre.

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“I have been looking for something reasonable. This is reasonable for what it’s worth.”

Mortgagee Jack Gringlas, from the Jadig Group, said the property had been sold as a last resort after Ms Kordos failed to make payments.

“We were left with no alternative but to take possession. We lost patience and took possession,” he said.

He said Ms Kordos had flagged legal action earlier today to seek an injunction to prevent the sale, but this did not eventuate.

Ms Kordos could not be contacted for comment.

The site was put up for sale after Ms Kordos repeatedly failed to act on promises that demolition was imminent.

Watch a replay of the auction HERE

Ms Kordos promised Frankston councillors during a meeting in March that she would demolish the function centre within four weeks.

Based on that pledge, the council voted to extend a planning permit for a four-storey building with 37 luxury apartments at the site.

As multiple deadlines lapsed, the Leader contacted Ms Kordos to inquire about the delay but she repeatedly assured the plans were progressing.

The site is regarded as a magnet for criminal activity and anti-social behaviour.

Councillors have long pushed for action on the centre and last year unsuccessfully called on the State Government to compulsorily acquire the site and demolish it.

Since closing its doors more than a decade ago, the centre has had different owners, each with plans to create something special at Frankston’s gateway.

Former motel units converted to low cost apartments at the back of the site have separate owners.