According to Frank Todisco, former managing director of PrintLinx, there is a disagreement between the print group and the landlord of 706 Lorimer St over unpaid rent.
“Our problem with the landlord is that we are flooding every time it rains. They won’t fix it and we won’t pay the security deposit,” said Todisco, calling it a “catch-22”.
The property is part of a trust managed by Australian Unity. The portfolio manager responsible for the property, Peter Lambden, told ProPrint he was aware of the situation but would not comment further.
Up until last week, PrintLinx is said to have been operating out of the factory with limited use of equipment between 8am and 5pm.
“They threw us out yesterday,” Todisco told ProPrint today (25 January).
A representative of Monjon Security, which is patrolling the premises, told ProPrint yesterday that PrintLinx had no access to 706 Lorimer St.
Todisco said PrintLinx was now operating out of a number of sites in Turner St, one street over from the Lorimer St site. However, he said PrintLinx’s fleet of equipment was still in the Lorimer St premises.
The dispute dates back to mid-2010, when Todisco said PrintLinx stopped paying rent at 706 Lorimer St “until they fixed the storm water drains”.
“We were three payments behind [totalling] $700,000,” added Todisco. He said the landlord then took the unpaid rent out of the $1.6 million security deposit. It is believed there has been a stalemate over the balance of these funds ever since.
The 33,400sqm Lorimer St site is part of the Australian Unity Diversified Property Trust, which was the Westpac Diversified Property Fund (WDPF) until being acquired by Australian Unity in October 2010.
WDPF’s annual report for the year to 30 June 2010 included details of the dispute.
“The major tenant at the 706 Lorimer Street, Port Melbourne investment property is in arrears and has defaulted under its lease. On 4 August 2010, a cheque for $699,438 was issued under the $1,574,692 bank guarantee to cover the arrears amount up until to 14 July 2010. A replacement guarantee for the balance of $875,254 has been issued to WDPF,” said the report.
“On 5 August 2010, a notice of default was issued to the tenant. As at the signing date of the financial statements [26 August 2010], the tenant had not provided a top-up to the guarantee as required.”
Other WDPF documents show that PrintLinx’s lease was due to run until September 2017.
PrintLinx occupied around a quarter of the site, which also houses Complete Print Solutions and Couriers Please.
Todisco said that Printlinx was now looking at a 13,000sqm premises in nearby Plummer St, also in Port Melbourne.
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