Finbar facing stinky situation at Palmyra apartments

Finbar Group is embroiled in a court battle over whether it has to tell potential buyers of apartments at its $50 million Palmyra project that the D’Orsogna factory across the road may produce bad smells.

The ASX-listed developer had applied to the State Administrative Tribunal to remove a condition of the approval of its Palmyra Apartments Estate, which required it to notify potential buyers of potential transport noise and odours from neighbouring industrial land users.

The SAT ruled earlier this year that the condition was not valid and set it aside, however, the Metropolitan Central Joint Development Assessment Panel appealed that decision in the Supreme Court of Western Australia

Supreme Court Justice Rene LeMiere this week sent the stinky situation back to the SAT to reconsider whether the condition should be applied.

Finbar’s 258-dwelling Palmyra Apartment Estate is located in close proximity to D’Orsogna’s smallgoods factory at the corner of Leach Highway and Stock Road, the operation of which creates wastewater which is then settled to remove solids before pumped into the Water Authority’s sewer system.

The solids are sealed in underground pits which are flushed every two to three months, generating odours which are “mildly offensive”, according to documents released today by the Supreme Court.

Since 2009, the City of Melville has received 12 complaints from residents concerning smells emanating from the D’Orsogna site.

According to its latest annual report, Finbar has sold 58 of the 128 apartments on offer in the first stage of development at Palmyra, with the sales having a collective value of $21.8 million.

A $52 million stage two, comprising a further 132 dwellings, is under consideration by the developer.

Meanwhile, Finbar today announced it had reached practical completion at its $49.6 million boutique apartments complex, Reva, in South Perth.

Finbar said it had secured $31.7 million in sales at Reva, which comprises 42 apartments and 18 commercial lots over eight storeys.

Settlements are expected to commence in January next year and contribute to the company’s earnings in the second half of the current financial year.

Managing director Darren Pateman said Perth’s apartment market was experiencing an uptick of interest, particularly among investors.

Mr Pateman said 45 per cent of all sales at Reva went to investors, and 18 per cent to interstate or international investors.

“The completion of Reva, with only a handful of apartments remaining, is indicative of renewed optimism in the Perth market on the back of an upswing in the resources sector and improved levels of consumer confidence generally,” he said.