08/02/2010 - 10:43

Finbar falls on Perth property purchase

08/02/2010 - 10:43

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Shares in listed property developer Finbar have fallen slightly after announcing it had purchased a 1.58 hectare site in East Victoria Park for almost $10 million which the company plans to develop into 95 apartments.

Finbar falls on Perth property purchase

Shares in listed property developer Finbar have fallen slightly after announcing it had purchased a 1.58 hectare site in East Victoria Park for almost $10 million which the company plans to develop into 95 apartments.

Finbar lead a joint venture in purchasing the property at 6 - 14 Welshpool Road and 185 - 189 Swansea Street, located seven kilometres from the Perth CBD.

The acquisition will see the 50 per cent Finbar-owned joint venture acquire and develop the site with long term partners Wembly Lakes Estates, generating a management fee for the company along with half of the development profit.

In a statement issued to the Australian Stock Exchange this morning, the company said it intends to develop the land into 95 residential walk-up apartments with capacity to develop an additional 6,200 square metres of showroom and office space.

"The property... is in close proximity to two arterial roads that provide both excellent car and public transport access to the city... it is also a short walk to train transport and the East Victoria Park retail and cafe precinct," the company said in a statement.

Finbar said the style of the new project will be similar to the company's Horizon project in maylands, which the company said achieved strong sales and received positive feedback from the community.

While the purchase is expected to settle next month, detailed planning works have begun and the company said it hopes to complete the project by late 2011.

Finar was down 4.5 cents per share, or 4.46 per cent, to 96.5 cents at 1343AEST.

 

Full announcement below:

RE: JV ACQUISITION OF 6-14 WELSHPOOL ROAD & 185-189 SWANSEA
STREET EAST VICTORIA PARK
We are pleased to advise that a Finbar lead joint venture has successfully secured the purchase of the above mentioned land for $9.3 million.

The property is a 1.58 hectare site which is located seven kilometres from the Perth CBD in close proximity to two arterial roads that both provide excellent car and public transport access to the City. It is also a short walk to train transport and the East Victoria Park retail and café precinct.

The acquisition will see a 50% Finbar owned joint venture acquire and develop the site with long time joint venture partners Wembley Lakes Estates. Finbar will earn a management fee along with one half of the development profit.

It is the Company's intention to develop the land into approximately 95 residential walk-up apartments. There is also capacity to develop an additional 6,200 sqm of office and showroom space on the property.

The style of development we propose is very similar in architectural design and amenity to the Company's Horizon project in Maylands which was completed last year and achieved strong sales and received very positive community feedback for the end product.

The purchase is contracted to settle in March. Detailed planning works have already commenced, and subject to timely approvals, we anticipate the project could be completed by late 2011.

 

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