MEDIA RELEASE 3 May 2006
BBX Property Fund to debut on NSX
Barter exchange company BBX Holdings Ltd (BBX) has formed a Property Investment
Fund for investment in Australian and New Zealand Real Estate.
The company will list on the Newcastle Stock Exchange (NSX) and is in the
process of presenting the prospectus and investment options to hundreds of
financial advisors, accountants and legal firms. Both cash and barter currency
is being sought from investors and BBX members. The offer is underwritten by
Martin Place Securities.
This investment represents a milestone in the barter industry and places BBX as
the market leader in offering members investment options and possible tax
benefits via superannuation.
Last year BBX floated on the Australian Stock Exchange, placing it in an ideal
position to capitalise on the market potential.
Tim Creasy, Chief Financial Officer of BBX, said the company has identified
member investors as well as property developers attracted to the concept of
selling part of their projects into the fund and exchanging equity in their
property for shares. Those shares will ultimately be tradeable on the Newcastle
“The BBX Property fund is unique as it will be the only fund that utilises
barter currency. This is done both at the investor level and when acquiring
properties for the fund,” Mr Creasy said.
“In consultation with our legal taxation advisor, BBX has developed a structure
that will have significant benefits in wealth creation for its members and their
“We have established a separate listed property investment entity, BBX Property
Investment Fund Ltd., so that members can invest in a portfolio of properties
with a suitable level of gearing.
“Our target is to utilise 33 percent barter currency, 33 percent cash and 33
percent debt funding in making property acquisitions around Australia and New
Zealand, predominantly apartments and units where a degree of oversupply
“As the properties rise in value so will the underlying value of the shares.
This fund will invest in a diverse and fully managed portfolio of residential
property and it can, if structured properly, be an investment for superannuation
funds. BBX also provides interest-free overdrafts to qualifying members for
working capital and for investment in property, which is a feature unique to the
“Members can utilise the funds in their account and in most cases BBX can extend
that with an overdraft to enable them to acquire such a property investment in a
number of ways including for their superannuation fund. BBX is getting a team of
independent consultants and advisers together to advise new & potential members
of the unique features of this investment and the possible taxation advantages.”
“We’ve chosen the NSX to list this vehicle because the requirements are more
flexible and suited to this type of fund. If the fund grows as expected we have
a strategy to list on the ASX within 12 months. Using barter currency is just
like using cash, you tick the appropriate boxes and BBX transfers funds from
your account to a share application in the property fund,” he said.
BBX members already transact around $100 million trade on an annual basis and
the company is the second largest barter operator in Australia, facilitating the
‘cashless’ trading of goods and services between members.
A trade exchange uses trade dollars, which have par value with the local
currency, to assign value to the transactions that take place between members.
In essence, the exchange acts as the third party facilitator and record keeper,
and issues members with monthly statements, showing the purchases and sales they
have made during the month. They also use plastic charge cards similar to other
credit/debit cards in order to conduct business.
BBX has approximately 4,500 Australian and New Zealand member businesses, with
offices and/or franchises situated in all mainland states of Australia, as well
as the North and South islands of New Zealand.
The company is also negotiating the establishment of master franchises in South
Details of the offer can be found at
www.bbxpropertyfund.com.au and a link to this site can be found at
www.ebbx.com. A hard copy of the prospectus
can be obtained by contacting BBX on 1800 222 229
or by email email@example.com.
Released for BBX by Dennis Rutzou Public Relations.
For further information please call Fiona Pennington or Dennis Rutzou on
(02) 9413 4244.