Gudinski buys rival group's HQ
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
Frequently Asked Questions about this Article…
According to the article, music promoter Michael Gudinski (through Michael Gudinski Promotions Pty Ltd) signed a contract and placed a caveat over Future Entertainment’s South Melbourne headquarters at 222 York Street on the same day the Future group was placed into liquidation. Industry sources say the sale could have been worth as much as $3 million.
Land-title records show the two‑storey building was jointly owned by Jasmel Investments Pty and Mark James Presents Pty — companies still controlled by Future directors Jason Ayoubi and Mark Condron — and was not owned by the three Future group companies that were put into liquidation.
The article reports Jason Ayoubi and Mark Condron bought the property for $1.55 million in April 2007. The City of Port Phillip assessed its capital improved value at $1.75 million, and industry sources said it had been marketed with an asking price of around $3 million.
Yes. Fairfax Media previously revealed that Future Entertainment’s intellectual property — including the Future Music Festival and Summadayze brands — was sold to Michael Gudinski’s Mushroom Group via a third party ahead of Future’s collapse.
The three companies in the Future group were placed into liquidation on September 4 by order of the Supreme Court of Victoria. Court documents show the group had been in financial trouble since at least November 2012, and Fairfax Media estimated debts at more than $500,000, a figure the article says is tipped to grow.
A caveat on the land title, as reported in the article, is a recorded notice protecting a purchaser’s interest after signing a contract. Land-title records show Michael Gudinski Promotions lodged a caveat over the South Melbourne property after signing the sale contract on the same day the companies entered liquidation.
Yes. The article says the series of complicated transactions that occurred in the lead‑up to the failure of the Future empire are now under investigation by liquidators.
From the facts in the article: watch for the timing of asset sales and related‑party ownership when companies face financial distress; note that intellectual property and physical assets can be sold separately and quickly ahead of liquidation; and understand that such transactions are often scrutinised by liquidators. These are practical points everyday investors can keep in mind when assessing distressed businesses.
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