BLUE SKY INVESTS SOUTH OF THE BORDER
26 March 2013,
THE Mexican food craze sweeping the nation has Brisbane-based Blue Sky Private Equity (BSPE) hungry for an investment in Beach Burrito Company.
The firm, which is a subsidiary of listed Blue Sky Alternative Investments (ASX: BLA), has made an investment of about $3 million in the restaurant chain, following its founding investment in 2007.
Beach Burrito has grown from a single restaurant in North Bondi, to a chain of six restaurants across New South Wales, and has increased revenue by five times in three years.
This second round of investment is through the establishment of the Blue Sky Beach Burrito Company Fund.
It will ensure the business can accelerate its growth.
Blue Sky Private Equity managing director Tim Wilson expects a strong expansion of the chain nationwide.
“Given the rising popularity of Mexican food in Australia, the team’s experience and their retail concept positioning, we expect the company to grow to a network of 20 to 30 company-owned restaurants within three to five years with the help of our latest investment,” says Wilson.
Beach Burrito managing director Blake Read has impressed Wilson, who describes him as atalented and focused entrepreneur.
“Blake has built a rapidly growing and highly-profitable business in a period where many restaurants were closing their doors. We are incredibly excited at the opportunity to continue this journey together,” says Wilson.
Blue Sky Private Equity specialises in providing rapidly expanding Australian companies with additional capital to help support their growth.
BLA, established in 2006, was listed in January last year, is trading unchanged on the previous day’s close at $1.08.
The company recently reported $4.831 million revenue for the half year to December, up 120 per cent on the previous corresponding period, but profit dropped 71 per cent to $569,000.