BlackWall Property Trust Releases Update On BQT Acquisition

Headquartered in New South Wales, Australia, BlackWall Property Trust (ASX: BWR) is a total real estate investment trust (A-REIT) company. The company distributes and generates income returns from assets held in its income portfolio. The company works as a subsidiary of BlackWall Limited along with its other subsidiary, WOTSO WorkSpace.

The company today announced an update on the acquisition of the Bakehouse Quarter Trust (BQT). The company has kept an offer in front of all unitholders in an unlisted trust known as BQT, to acquire their units in exchange for new units in BWR. 

The acquisition of the Bakehouse Quarter Trust was structured by the company’s founders, Seph Glew and Paul Tresidder in the late 1990s.

The only investment of BQT is in the Bakehouse Quarter. As per the pre-emptive rights of the BQT constitution, if more than 75% of the BQT unitholders accept the offer, then the accountable entity can accept the offer on behalf of any remaining BQT unitholders.

As the 75% limit has been exceeded, BWR has successfully acquired all of the units in BQT.

The sale of Bakehouse Quarter by Kirela Development Unit Trust to YUHU Group was successfully settled on 18th April 2019.

In a recent General Meeting addressed by the Chief Executive Officer on 10th May 2019, the CEO notified about the proposal driven by the successful sale of the Bakehouse Quarter. According to the CEO, if the proposal gets approved, the company will have a strong financial position, and its business structure will be simplified.

The CEO elaborated that after the approval of the proposal:

  • The balance sheet of the BlackWall Limited (BWF) will include $10 million in cash and a $17 million investment in BWR.
  • BWF’s cash will be used to facilitate the rollout of WOTSO’s growing flexible workspace business.
  • The gross assets of the BWR will grow over $370 million.
  • The trust will have around $100 million in cash, and the gearing will be less than 35%.

The CEO believes that the financing and real estate strategies employed by the company’s founders have generated an IRR above 15% per annum over a 22-year period.

On 26th Feb 2019, BWR released its interim financial report for the half-year ended December 2018. The company reported total revenue of $20.2 million in the half year ending 31st December 2018, a 91% rise in comparison to the prior corresponding period.

    

The company’s stock closed flat at $1.400 today. The stock was trading at the same price the entire day with no fluctuations. Around 25,000 shares of BlackWall Property Trust exchanged hands in trade today. The 52-week high and low value of the company’s stock was recorded at $1.550 and $1.345, respectively. BWR’s market cap was recorded as $93.29 million at the time of writing the report.


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