Public Relations Company

 
Public Relations Company  
 
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 being finalised.

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 Stock Exchange.

“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 currently exists.

“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 trade exchange.

“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 www.ebbx.com .

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Released for BBX by Dennis Rutzou Public Relations.
For further information please call Fiona Pennington or Dennis Rutzou on
(02) 9413 4244.



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