MEDIA RELEASE 8 March 2006
BBX Property Fund to debut on NSX
Barter exchange company BBX Holdings Ltd (BBX) is forming a funds management
division through a 50 percent owned subsidiary.
The company will initially be acting as the manager of a property fund called
BBX Property Investment Fund Limited and will be seeking to list on the
Newcastle Stock Exchange (NSX). A prospectus for the fundraising is currently
Both cash and barter currency is being sought from investors & BBX members. The
fundraising is being carried out in conjunction with a new drive by BBX to build
market awareness and gain new members.
Last year BBX floated on the Australian Stock Exchange, putting it in an ideal
position to capitalise on the market potential. 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.
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.
“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 can also provide interest-free overdrafts to qualifying members for
working capital and for investment in property, which is a unique feature to the
“We’ve chosen the NSX to list this vehicle because the requirements are more
flexible and suited to this type of fund and the costs are less. If the fund
grows rapidly we have a strategy to get us listed on the ASX within 12 months.
Using barter currency is just like a cash application, you tick the appropriate
boxes and BBX transfer funds from your account to the account of the property
fund,” he said.
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,
similar to a bank, 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 4,300 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.
BBX can be contacted on 1800 222 229. The website is
Released for BBX by Dennis Rutzou Public Relations.
For further information please call Fiona Pennington or Dennis Rutzou on
(02) 9413 4244.