01/05/2013 - 14:22

Finbar JV plans $125m apartments project

01/05/2013 - 14:22

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Finbar Group plans to construct a 240-apartment complex in West Perth, after acquiring a 4,410 square metre development site on Murray Street.

Finbar said it had acquired the land in collaboration with long-term joint venture investors, with the contract to settle in November.

The current buildings at 647-659 Murray Street will be demolished to make way for the $125 million apartment development.

Finbar will retain a 50 per cent interest in the project as well as receive a project management fee.

Managing director Darren Pateman said Finbar was pleased to secure the development site for its continued growth.

“All existing projects are adequately funded through budgeted working capital and debt facilities from major Australian banks where the repayment of these facilities are covered by underlying pre-sales that well exceed debt levels,” Mr Pateman said in a statement.

“New opportunities can therefore be sought that are timed to recycle our capital efficiently through cashflow from completed projects.”

Finbar expects the project to contribute to its earnings in the 2016 or 2017 financial year.

AT close of trade today, Finbar shares were up 2.4 per cent, trading at $1.50.

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