Month: November 2012

Article by Paul Milton Butler

Millionaire jumps into skydiving investment

Electronics multi-millionaire Stephen Baxter has jumped head-first into a new project-indoor skydiving.

The former North Rockhampton schoolboy’s latest project involves two former soldiers Wayne Jones and Daniel Hogan, who both served 15 years with the SAS. Danny also did a couple of years with the Navy Seals in the US. They plan to build Australia’s first indoor skydiving centre at Penrith in Sydney, at an estimated cost of over $12 million.

Mr Baxter said this week he had mentored the two men for 12 months on how best to go about setting up the business and how to raise capital to build the “jump centre” which would be the first in Australia. The three have become firm friends, with their close army connection. So much so that Mr Baxter has kicked in $2 million of his own money to help build the indoor skydive facilities in Penrith. The two former SAS members, along with Mr Baxter, plan to build the skydiving facility at Penrith Panthers’ entertainment complex in western Sydney.

Indoor Skydive Australia is hoping to raise $12 million through a share market float to build an 11m high, vertical wind tunnel at the Panthers’ complex. The tunnel will be one of the largest in the world, able to have eight skydivers in simulated freefall at one time – giant turbines are used to generate and updraft which holds the skydivers aloft. The group plans to roll out similar jump centres in Melbourne and the Gold Coast.

They plan to open the adrenalin-pumping facility in time for Christmas next year. The facility will be used to train military parachutists and civilian skydiving teams, as well as providing an exciting adrenaline ride for anyone from action-sports enthusiasts to children’s birthday parties and corporate team building.

Messrs Jones and Hogan were helped in setting up their dream by SAS Sergeant Blaine Diddams, who was killed in combat in Afghanistan earlier this year. Blaine’s uncle John Diddams is on the board of ISA and has significant corporate and start-up experience, with Mr Baxter serving as a non-executive director.

Development of the facility has been fully approved by Penrith City Council. The facility will be adjacent to the main entrance of the Penrith Panthers’ Leagues Club, which has 140,000 members and is about to begin an $850 million redevelopment.

The initial public offer of shares is anticipated to raise $12 million to construct the facility and for initial working capital, by the issue of 60 million shares at 20c each. The offer opened on November 5 and will close on December 5.

Mr Baxter said that he was thrilled to be involved and looked forward to being one of the “first jumpers”.

Written by Sophie Foster – http://www.goldcoast.com.au/article/2012/11/02/441038_gold-coast-business.html

THE Gold Coast could soon be home to one of Australia’s first indoor skydiving tunnels.

Brisbane businessman Stephen Baxter is one of the backers of a new tourism company behind the plans that would see one built in NSW and one on the Coast.

Indoor Skydiving Australia Group, led by two former special forces officers Wayne Jones (chief executive) and Daniel Hogan (chief operating officer), will this month attempt to raise $12 million ahead of a stockmarket listing.

The company plans to build a 21m-high wind tunnel in Penrith, at the Panthers Leagues Club.

“We’re looking at building a number of these facilities in Australia, one on the Gold Coast. There’s a huge market in Australia and within our region for these facilities,” Mr Jones said.

Mr Baxter said the first facility was “quite a monster” which would be able to take eight special forces guys at a time practising manoeuvres.

But he said for the Gold Coast and other locations it would be smaller “tourist tunnels” for smaller groups if not singles “just to give that once-off flight experience”.

The 15m-high tourist tunnels were expected to cost significantly less.

Mr Baxter said Initial Public Offer documentation was lodged with the Australian Securities and Investments Commission this week.

“We’re looking to raise $12 million,” he said, “We already have pre-committed $3 million from various shareholders.”

Mr Hogan said the lift in the tunnels were provided by 450-horsepower fans in the ceiling which draw winds up through a flight chamber, allowing the enthusiast to “fly”.

“Once those winds are drawn up through those fans, it is then recirculated through two very large return air towers and it goes down into the basement and then it is drawn back through that flight chamber at around 250 km/h.”

“You are essentially skydiving,” he said.

“It’s the closest thing you’ll get to actual skydiving without jumping out of a plane.”

Each flight is expected to last 50 seconds, which is equivalent to freefalling from 14,000 feet. The skydive is expected to range from $80 to $150, available to anyone between the ages of five and 95.

The first facility is expected to be operational no later than January 2014, with the rest of the indoor drop zones to follow shortly afterwards.

Mr Baxter ranked 149 with an estimated wealth of $38 million in this year’s Queensland Top 150 Rich List, published by The Sunday Mail. He made his fortune through the fibre optic cable company PIPE Networks which was sold to TPG Telecom in 2010.

We are elated to introduce the Chairman of Indoor Skydive Australia Group, Lieutenant General (Retd) Ken Gillespie.

Ken retired from the Army on 27 June 2011 after a 43.5 year career.  He was born in Brisbane in June 1952 and at the ripe old age of 15.5 years he enlisted in the Australian Army as an apprentice in 1968. He graduated from the Officer Cadet School, Portsea in 1972 and was commissioned into the corps of the Royal Australian Engineers.

Ken enjoyed a diverse career. In his early years he performed a number of instructional, administrative and leadership functions, mainly associated with military engineering. As a middle ranking and senior officer he gained significant operational experience both as a deployed commander and eventually as the overseer of all Australian military operations.  He demonstrated very high order strategic planning, engagement and implementation skills and excelled in demanding high command appointments.

For his distinguished service and high order achievements as the Vice Chief of the Defence Force/Chief of Joint Operations and Chief of Army, Lieutenant General Gillespie was advanced to Companion in the Military Division of the Order of Australia in the Australia Day 2011 Honours List. He was previously advanced to Officer of the Order of Australia for his service as Commander Australian Contingent, Operation Slipper, having been a Member of the Order for his service as Commander ASTJIC. He was also awarded the Distinguished Service Cross for his command and leadership in East Timor in 2000/2001 and the Conspicuous Service Medal for his work in Namibia in 1989/90. Lieutenant General Gillespie was awarded the Legion of Merit (Commander) from the United States of America in 2009. In 2010, the Republic of Singapore awarded him the Meritorious Service Medal (Military – Pingat Jasa Gemilang).

Since his departure from the Service, Ken enjoyed a long break but has recently started to re-engage with the workforce.  He is the part time Defence Adviser to the New South Wales Government, a Director of the Boards of Australian Aerospace Limited, the White Ribbon Foundation, and the Australian Drugs Foundation.   He formed his own small strategic consultancy company and consults to Government Departments, Corporations and small companies on leadership, culture and change management.  He is becoming a successful national level corporate speaker.  He remains very supportive of Ex-Service organisations and Legacy.  He is an ambassador for national bowel and prostrate cancer organisations as well as Soldier On a charity concerned with supporting wounded soldiers.