Daniel Grollo loses $16m Eureka Tower penthouse in Grocon collapse fallout

The luxury penthouse, which recently underwent a $15 million facelift, will be sold as the fallout from Grocon’s collapse continues.

Daniel Grollo’s Grocon empire has collapsed. Picture: Stuart McEvoy

Daniel Grollo has lost control of his multimillion-dollar penthouse apartment in Melbourne’s Eureka Tower which will be sold off by administrators to raise funds for out-of-pocket creditors.

Administrator KordaMentha has confirmed it has taken control of the level-80 luxury sub-penthouse in Eureka Tower as it winds up large parts of Mr Grollo’s fallen Grocon building empire.

“The administrators plan to put the property to the market for sale,” a KordaMentha spokesman said.

The apartment, which offers 360-degree views of Melbourne and underwent a fit-out estimated to cost $15 million in 2019, is set to be one of the city’s most expensive sales when taken to market.

The property contains a central lift which opens to a private lobby and hallway, along with four-bedrooms each with ensuite, two offices, a gym and eight car spaces.

The interior has been finished in black granite, marble, lacquer, metallic wallpaper with furniture from French luxury house Hermes and kitchen appliances from Sub-Zero and Wolf.

The sky-high luxury pad was valued at $16.5 million in 2019.

Daniel Grollo in his penthouse apartment on level 80 of the Eureka Tower.

KordaMentha took control of the apartment when another 45 Grocon companies were placed into administration on Monday.

The latest appointments include Grocon Group Holdings, which houses the group’s legacy construction business, and Grocon ET 80, which owns the Eureka Tower penthouse.

Both of those companies are owned by Mr Grollo.

Mr Grollo declined to comment on the loss of the Eureka Tower property, saying specific questions about it needed to be directed to the administrator.

Grocon built Eureka Tower in Riverside Quay Southbank, along with other Melbourne landmarks including the Rialto, Crown Casino and the Emporium shopping centre.

But it has fallen on hard times in recent years, calling in administrators in November amid a $60m debt pile.

Mr Grollo’s penthouse has been singled out for attention by disgruntled Grocon creditors who are pushing KordaMentha to investigate a complicated web of inter-company lending, as well as an $11.5 million personal loan extended to Mr Grollo.

Daniel Grollo atop the Eureka tower during construction.

Creditors have also raised questions about a $14.4 million GST bill, saying it points to revenue of $144 million which has not been accounted for.

Mr Grollo oversees a sprawling corporate structure of more than 110 companies, 87 of which have now been placed in administration.

The construction heir has blamed Grocon’s downfall on a dispute with the NSW government over blocked views in a property development at Barangaroo in Sydney.

Grocon is suing Infrastructure NSW for $270 million.

Mr Grollo has previously suggested creditors could be paid from any victory in that case, although at least one major creditor is pushing for company assets to be sold off via a liquidation process.

KordaMentha aims to hold a second meeting of creditors covering all 87 companies by the end of March.

Creditors will vote on whether to accept an offer put forward by Mr Grollo via a deed of company arrangement or move to liquidate the companies.