BBX Property Fund to raise additional funds
Following a successful listing on the National Stock Exchange of Australia (NSX) last year, BBX Property Fund has issued a second prospectus to raise additional funds for property investment.
Investment in the Property Fund is open to the general public as well as members of the BBX exchange. The prospectus invites investors to apply for up to 2,000,000 ordinary shares and up to 8,000,000 B class shares at an issue price of $1.00 each.
To apply for B class shares, an investor must be, or apply to become, a member of the BBX exchange and is then able to secure an investment that is tax effective when used in conjunction with a self managed superannuation fund.
The company recommends that investors seek independent professional advice in this regard.
The BBX Property Fund is a licensed investment company established to invest in residential and commercial properties in the capital cities and growth centres of Australia and New Zealand.
According to BBX Property Fund, it believes it is an opportune time to invest in property in Australia.
This prospectus provides a great opportunity for investors to again participate in the acquisition of apartments and commercial units at a perceived cyclical low point in the market.
After several years of strong development there remains an oversupply of quality accommodation in a number of regions.
Although some investors have lost confidence in the market, occupancy rates and yields still remain strong, especially in regions they are looking to invest in for the fund.
This was the case 12 months ago, when they first listed, and is still the case today, hence its decision to go to the market for additional capital to grow its investment portfolio.
BBX has already identified and, in some cases, settled or exchanged contracts on a number of properties where the vendors have been prepared to sell multiple units within quality developments.
Examples of these properties can be viewed at company website. A copy of the prospectus is also available on the website.
BBX Holdings Limited, the parent company of the Property Fund, successfully listed on the ASX in August 2005, becoming the only exchange in the world to be publicly listed on a main board.
BBX is a membership based trading program whose primary role is to generate new opportunities for all types of businesses and to show business owners how to offset many current cash expenses by utilising the down time and idle inventory in their business.
The trade exchange uses BBX dollars, a currency unit having equivalent value to Australian currency, to assign value to the transactions that take place between member businesses.
In essence, the exchange acts as the third party record keeper, similar to a bank, and provides a sophisticated market where thousands of transactions take place on a cashless basis.
BBX has offices throughout Australia and operates in New Zealand through a master franchise. Through their BBX accounts, member businesses in these countries traded in excess of $146m in the financial year ending 30 June 2006, averaging over $33,000 per member.
BBX has recently expanded to India and China through master franchise arrangements and further international expansion is being pursued.
4-Jun-2007