THE National Stock Exchange listed BBX Property Fund has issued its fourth prospectus looking to raise up to $2 million.
Since listing in 2006, the fund raised $15 million in share capital, which includes approximately $13 million BBX trade, and has purchased 17 properties. The fund invests in residential and commercial properties in Australia and New Zealand.
This prospectus invites investors to apply for up to 400,000 Ordinary Shares and up to 1,600,000 ‘B’ Class Shares at an issue price of $1.00 each.
Chairman Simon Touma believes that despite the recent financial downturn, it is an opportune time to invest in property.
“The prospectus provides a great opportunity for investors to participate in the acquisition of apartment and commercial units at a point in the market that is not just a ‘cyclical low’ but possibly the bottom due to the subprime lending crisis that has depressed markets around the world.
“We expect there to be excellent buying opportunities over the next 12 months as interest rates remain low but developers find themselves having to clear stock in the cash marketplace to reduce their mortgages to the increasingly impatient banks,” he added.
“We believe the investment fundamentals such as occupancy rates and rentals will remain strong in the areas in which we are investing. We also think that there will continue to be a shortage of residential accommodation which will drive rents up further with capital values to follow,” he concluded.
Australian Property Journal
