South Perth-based Finbar Group Ltd expects to quadruple its net profit for the 2008 financial year and has forecast early sales revenue for fiscal 2009 from its Domus and Ceresa apartments.
South Perth-based Finbar Group Ltd expects to quadruple its net profit for the 2008 financial year and has forecast early sales revenue for fiscal 2009 from its Domus and Ceresa apartments.
In a market update announcement, the property development company said it anticipated a record after tax profit of $12 million for FY08, up from $3 million reached in the previous year.
Meanwhile Finbar is expecting settlements for the Ceresa and Domus apartments shortly, with sales from that to contribute to the fiscal 2009 revenue figure.
Finbar has so far sold 109 apartments out of a total 113 at Ceresa while 78 out of 81 apartments have been purchased at Domus.
Earlier this week, Finbar secured a subsidiary of Monadelphous Group Ltd as its major tenant for the 59 Albany Highway joint venture in Victoria Park.
Below is the full announcement:
- Anticipating record net profit of $12 million for FY2008.
- Successful completions at Domus and Ceresa bring early sales revenue for FY2009.
- Albany Highway commercial property substantially leased.
- Construction commences at The Saint, and Albany Highway commercial.
Finbar Group Limited is pleased to announce that a record after tax profit of $12 million is anticipated for the year ended 30 June 2008 (FY07 $3.0m).
Residential Update
Del Mar, a project completed in the first half of the financial year, has 8 lots which remain to be sold in the 49 lot project.
Construction of the Ceresa project was completed in June 2008. Settlements for this project are imminent and revenue from these sales will be recognised in FY 2009. In all 109 apartments in the 113 apartment project are sold.
Completion of the construction of the Domus project also occurred in June 2008. Settlements for this project commenced this week and revenue will be recognised in FY2009. 78 of the 81 apartments in Domus have been sold.
Construction has continued on the Reflections project with the structure now up to level 19 of the 24 level building. Only one lot remains to be sold in the Reflections project which comprises 142 residential apartments and commercial lots in total.
Construction continues at the 197 lot Royale project where 190 lots have now been sold.
During the reporting period construction commenced on the Code development. To date, 112 sales have been achieved in this 114 lot project.
34 sales have been achieved at the 37 lot Circle development where construction progress continues.
All three stages of the Horizon project are now under construction with Horizon on Sixth nearing completion, the structure for Horizon on Central reaching the third level of the four level building, and the refurbishment works on the sensitive Horizon Heritage building now underway. Horizon on Sixth and Central are both sold out projects (112 lots in total).
Construction works commenced in May for The Saint project where 85 apartment lots are to be constructed. The Saint is also a sold out project.
The sales launch for the company's Newcastle street project (now referred to as Verve) commenced in this reporting period. The market acceptance for the Verve project has been strong with 30 sales being achieved in the 34 lot project, a pleasing result for a project launch which has occurred in what is generally a more subdued local property market.
Development approval has been received for the construction of the residential project which will take place on part of the company's 59 Albany Highway property. Marketing for the residential project, to be called The Edge, is due to
commence at the end of the month and it is hoped sufficient market acceptance will be achieved to commence construction of the project before the end of the calendar year.
Commercial Update
As reported earlier this week, the company has secured the lease of the majority of the commercial building to be constructed on the 59 Albany Highway property. Work has now commenced on the construction of the 12,600 sqm office project.
Development approval has been received for the construction of a 16,550 sqm of office space at the company's 175 Adelaide Terrace property. Colliers International has been appointed as leasing agent. The company will consider
triggering the commencement of construction once sufficient leases are secured to demonstrate market acceptance for the proposed product.
