The once mighty Grocon building empire run by prominent Melbourne builder Daniel Grollo has fallen into administration after heavy losses.
Stephen Drill, News Corp Australia Network
Australian building giant Grocon is on the brink of collapse, owing up to $60 million in debt and forcing 52 companies in the group to appoint administrators.
Daniel Grollo says his father Bruno is “dismayed” at the business's’s financial difficulties, which are being blamed on a $270 million dispute involving James Packer’s Crown Casino development at Barangaroo.
However, Grocon had a series of failures in recent years, including a cost blowout on the Commonwealth Games Village that led them to be banned from building in Queensland.
Mr Grollo, 50, yesterday told News Corp Australia that his father, who handed on the company to him after a prolific career that included building Melbourne’s iconic Rialto Tower and Crown Casino, was dismayed at the circumstances.
“He’s no different to me when I spoke to him. It’s a bit of dismay about how this has happened, he’s been hearing about Barangaroo for seven years,” Mr Grollo said.
“My relationship with dad is fine.”
Grocon bought into Barangaroo in 2013, spending $40m with hopes to build a $1.4 billion apartment tower with Canada’s Oxford Property Group and a shopping centre with Westfield owner Scentre Group.
But it had to sell out when it lost the right to block Mr Packer’s views and that of a Lendlease development.