Gudinski buys rival group's HQ

Music promoter Michael Gudinski bought the South Melbourne headquarters of rival festival company Future Entertainment on the same day the group collapsed owing massive debts to creditors.

The sale could have been worth as much as $3 million, according to industry sources.

The deal is the latest in a series of complicated transactions that occurred in the lead-up to the failure of the Future empire, the circumstances of which are now under investigation by liquidators.

Fairfax Media has previously revealed Future Entertainment's intellectual property - which includes the Future Music Festival and Summadayze - was sold to Mr Gudinski's Mushroom Group via a third-party ahead of the collapse.

But Future's headquarters at 222 York Street, South Melbourne, wasn't owned by any of the three companies in the group, all of which were placed in liquidation on September 4 by order of the Supreme Court of Victoria.

The two-storey building is jointly owned by Jasmel Investments Pty and Mark James Presents Pty, companies still controlled by Future directors Jason Ayoubi and Mark Condron (also known as Mark James).

Land title records show Michael Gudinski Promotions Pty Ltd placed a caveat over the property after signing the contract of sale on the same day as the liquidations.

The property was bought by Mr Ayoubi and Mr Condron for $1.55 million in April 2007. The City of Port Phillip has assessed the capital improved value at $1.75 million.

Industry sources say Future Entertainment's headquarters had been put to market with an asking price of around $3 million.

Court documents show the group had been in financial trouble since at least November 2012. The three companies were placed into liquidation with debts that Fairfax Media has estimated at more than $500,000, although this figured is tipped to grow.

Mr Ayoubi declined to comment. Mr Gudinski and Mr Condron did not respond to requests for comment.

cvedelago@fairfaxmedia.com.au