Finbar buys Highgate college for $11.8 million

South Perth-based unit trust Finbar Property Trust has announced plans to convert Highgate's St Mark's College into apartments after acquiring the property for $11.8 million.

The full text of a company announcement is pasted below

We confirm that Finbar Funds Management Ltd as trustee for the Finbar Property Trust has secured the purchase of the above mentioned property for $11,800,000.

The College is located at 369-375 Stirling Street in Highgate and is situated on a land area of 8,790 sqm which currently comprises 3,200 sqm of existing school buildings. The land has a residential zoning of R80.

The property is being purchased on a lease back arrangement with the current owners who operate a worldwide chain of language schools.

On expiry of the lease (and option if exercised), it is our intention to demolish all non heritage buildings and make the property available for development into residential apartments for sale to the general public.

"Acquiring this property provides a good opportunity to secure future development land into the group with fully leased buildings that will provide income growth for the trust and cover land holding costs until the land's redevelopment potential can be realised" Managing Director John Chan said.