The engine room that once powered the Jamberoo Milk Factory to be auctioned

Updated 6 months ago

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Published 26 March 2026

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The Property Council's Illawarra Outlook Lunch took place this week.

A piece of Jamberoo's history is on the market.

'The Powerhouse' was once the literal engine room that powered the famous Jamberoo Milk Factory, and has been listed for sale.

The property has been transformed into a popular lifestyle estate.

Read more: Kiama sellers pocket a median $730k profit, putting them on top of the real estate market nationally

'The Powerhouse' was once the literal engine room that powered the legendary Jamberoo Milk Factory. Picture: Supplied

The property

The five-bedroom property sits on 3258 square metres and is located at 32 Factory Lane, Jamberoo.

The property is currently owned by Nulux Energy chairman and former Macquarie banker, Tony Ferguson and wife Robin.

Constructed in 1928, the building retains its industrial proportions and spirit.

'Jamberoo Valley's golden age'

Selling agent, Michele Lay from Ray White Kiama said The Powerhouse was "now ready to power a new vision", and the ability to own a piece of Jamberoo's history was appealing to prospective buyers.

"You could update it slightly, subject to the heritage order," she said.

"You aren't just buying a home - you are becoming the custodian of Jamberoo's most powerful history."

Mrs Lay saidthis building was the site of the South Coast's industrial ingenuity.

"Today, it stands as a preserved moment to the Jamberoo Valley's golden age - reimagined for a new era of celebration, luxury, and vision," she said.

"Because of its vital role, the Powerhouse was built with a scale and strength rarely seen in residential architecture.

"The four-metre soaring ceilings and expansive internal voids were designed to manage the heat and energy of the 1920s steam era.

"Today, those same proportions provide a gallery-like atmosphere, offering a sense of volume and 'industrial chic' that modern builds cannot replicate."

Constructed in 1928, the building retains its industrial proportions and spirit. Picture: Supplied

Mrs Lay said the next owner of the "stunning" home could potentially use it as an "amazing destination Airbnb" and a "luxury weekend getaway".

"It's got 26kW, so basically they run the house for nothing, and there's a battery for their electric cars," she said.

"[That means] people don't have to worry about petrol in this day and age, coming down from Sydney, which could be a selling point."

The property has significance under the Kiama Local Environmental Plan 2011. Picture: Supplied

Heritage and history

A butter factory operated on the site from 1887 before the formation of the Jamberoo Co-operative Dairy Company in 1908.

According to the State Heritage Inventory, the property is a "well preserved dairy co-operative factory and building complex, indicating the historic importance of dairy farming in the region".

It has significance under the Kiama Local Environmental Plan 2011.

The Jamberoo Dairy Co. was operating in the old Wauchope factory. The company was reconstituted, the former factory dismantled and a new one built on the same site.

There was an engine room, a cool room and a receiving verandah on the northern side. The factory had a capacity of 10 tonnes of butter per week.

The factory was officially opened In December 1908 by C. W. Craig, chairman of directors.

The property has a guide of $2.5 million to $2.7 million. Picture: Supplied

The new dairy factory fitted for steam or electric operation was built at a cost of £16,000 in 1928.

It was a brick and concrete building with walls tiled to a height of six feet and a capacity to treat 15,000 gallons of milk daily.

The factory was considered the most modern in the southern hemisphere.

According to the State Heritage Inventory, the Jamberoo factory reached a record production of 31 million gallons for the year 1956.

The co-op, which changed names and hands several times, once supplied Peter's Ice-Cream but ceased operations in the 1980s.

According to Cotality records, the property was previously sold in September 2021 for $2.5 million.

The property is now being sold via a timed auction, ending on April 14.

The price guide is $2.5 million to $2.7 million.

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