Finbar Group has announced plans to demolish the old ABC building on Terrace Road to make way for two new high rise apartment buildings.

In a statement, the company said stage 1 of the project will be a 23-level building comprising two and three bedroom apartments, a penthouse and a sub-penthouse.

Stage 2 will be a 21-level apartment building with 42 half floor apartments, a penthouse and a sub-penthouse.

There will also be two commercial lots on the ground floor of each building.

Finbar Chief Executive, Darren Pateman said, "This is very familiar territory for us having developed several premium apartment buildings on Terrace Road including Altair, Westralia and Reflections."

He said that the 1.3 hectare site is the last of the large scale development sites on Terrace Road.

The former ABC site was purchased in 2008 for $27.58 million by joint venture partners Ventrade Australia and is being developed by Finbar in a joint venture arrangement with the land owner.

Plans will be lodged with the City of Perth today and subject to development approval and the finalisation of the scheme amendment process.

Finbar hopes to launch a marketing campaign for the apartments later this year.

The company said it would release details of the third and fourth stages of the projects, which will comprise the construction of a new 29 story tower on Adelaide Terrace and the refurbishment of heritage building, at a later date.

Meanwhile Property developer Finbar Group has upgraded its annual profit guidance.

It said it had received additional revenue from a high conversion rate in settlements for apartment stock in completed projects.

That revenue has supported second half earnings, and Finbar now expects to post net profit of around $23 million for the year ended June 30.

Finbar previously had forecast annual net profit of over $21 million.

It posted a net profit of $19 million in the 2008/09 financial year.

The upgrade saw Finbar shares soar, adding 13 cents, or 13.98 per cent, to $1.06 on Tuesday.