Buildings poser for Wu in merger plan

Michael Wu is going all in on the Melbourne mega merger, planning to sell his offset equipment and vacate the Ability Press building.

Kamrul Chowdhury, owner of the Keysborough factory and equipment dealer PNS Graphics, says he and Wu have come to an arrangement to settle the outstanding finances.

Chowdhury says Wu owes him for one of his presses and a personal loan, and will need to pay to get the building ready for new tenants – all before October 1 when the lease expires.

[Related: More credit and debt news]

Ability has four Heidelberg offset presses at the site: a 10-colour fully owned by Chowdhury; another 10-colour that Chowdhury says he is still oweed money for; and a 10-colour and six-colour that Wu has bank financed.

Wu moved into the site in 2010. It formerly housed Energi Print, which collapsed in 2009.

The plan will see Ability Press vacate the building by October 1 when its lease expires. Wu was previously given until last Friday to either decide to leave or commit to another five-year lease, and chose the former after agreeing to the Mercedes Waratah merger last Tuesday.

Chowdhury says Wu is paying about $32,000 a month in rent, and says he wanted to get the issue resolved quickly because others have offered to pay $40,000.

He says it is not yet determined how the presses and other Ability equipment will be sold, and it is possible that he will buy all or part of it himself to expedite the deal.

Wu faces a similar problem at On Demand, as he took over the lease of its Port Melbourne facility last year when he bought the business out of administration. Wu has previously said On Demand would be included in the Mercedes Waratah merger.

The rent is said to be on the high side, and the lease would be expensive to break, making the best option to sub-lease it to another company – though the Herzog family, which owns the building, would need to approve the new tenant.

The merger will see Wu's businesses and Docklands Press move into the Mercedes Waratah site in Port Melbourne by September, a tight timeline to resolve the building matters.

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5 thoughts on “Buildings poser for Wu in merger plan

  1. I’ve ready some funny stories on ProPrint in my time. This would have to be up there with the funniest.

    1. PNS Graphics, a company that sells machines that you have to spend big money on to get them running. Kamel has more more money that you would never see in ten life times. What about his deal with the original Image Print at Lane Cove. Set up a print business only to hand it over to the now Immaj. That was the start of discount print in Sydney.
      He deserves everything that’s coming to him…

  2. Obviously, Kamrul can sell stories better than selling his second-hand machines!
    Yet Again! Pro-print is not happy for my success! I think I have to buy them out as well, Then, they will have to like me, won’t they?

    1. Careful Michael; Gina Rinehart tried that with Fairfax and it cost her heaps but they still wrote about her! You’ll be fine…just play your main game.

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