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Blackwall Property Trust 1H19 results


The Blackwall Property Trust released their 1H 2019 results this week with the focus once again on the pending ale of the Bakehouse Quarter to Yuhu Group.

Completion of the sale to Yuhu has been delayed a number of times with the latest being mid April 2019.

In November 2018, Blackwall announced that they intend to make a takeover bid for Kirela (vendor of the site) on an NTA for NTA basis following the Yohu settlement. Blackwall have advised that an offer has been made to Kirela unitholders and a commitment received (subject to the sale proceeding and final unitholder approval) to roll a certain number of Kirela units into BWR. The most significant effect of this will be to add around $120 million of net assets to BWR’s balance sheet of which around $100 million will be cash.

As part of this transaction, BlackWall will also seek approval for BWR to make the following investments:

1. The acquisition of BlackWall’s position in the Pyrmont Bridge Trust;

2. The acquisition of the property housing WOTSO Fortitude Valley.

3. Make a scrip for scrip takeover bid for all of the issued units in an unlisted trust know as BQT (BQT’s only investment is a holding of around 9% in Kirela).​

Highlights

Other highlights for the group were;

  • Net Profit of $9.3M (up 80%) as a result of additional tenant income

  • Net Assets up 2.3% to $154M.

  • NTA per unit down 2c to $1.53cpu

  • Final Distribution of 5.0cpu, in line with the previous distribution.

BWR Trading Chart vs ASX200 AREITs

Blue - BWR

Purple - ASX200 AREITs

#Blackwall