Finbar gets green light in Vic Park

Finbar Group Ltd has received development approval for its seven-storey mixed office and residential development in Victoria Park, and is close to signing an anchor tenant.

Demolition works have begun at the former Nutrimetics site at 59 Albany Highway, which will contain 12,150 square metres of office space in two buildings, and 75 residential apartments. 

A Finbar spokesperson told WA Business News it was in the final stages of securing an ASX-listed top 200 company associated with the mining industry as its sole office tenant for the project.

Company director Rick Rimington said while he had not expected a single tenant to commit to the entire office space, the site had a good vantage point on the fringe of the city and a large parking facility on the eastern side.

He said the 12-year lease had been negotiated off-market, with the space leased for around $400/sqm.

The office component of the development will consist of two towers of seven levels each.

A ground floor retail area will include a medical centre, restaurant, coffee shop and bike store.

Mr Rimington said the company was aiming for a 4.5-star green star rating for its office development.

Under the green star rating system, the building will receive extra points for its proximity to a main transport route.

“The fact that we have a bicycle store as a tenant will also add points, as will the position of the building,” Mr Rimington said.

While construction of the office component is due to commence in June, Finbar is yet to recruit a builder for the residential development, which it has been planning for about 18 months.

The residential area will comprise 64 apartments and 11 townhouses, with shared facilities including a swimming pool, lounge, gym, games room and sauna.

The office and residential areas will be connected by a car park, although this will not be directly accessible.

Soil tests and engineering works are currently taking place on the 1.25-hectare site, while building plans are still being developed.

The property is bordered by Albany Highway, Armargh Street, Hordern Street and Oswald Street.

Finbar bought the site for $12.5 million in June 2006, through a joint venture with Wembley Lakes Estates Pty Ltd and two minor parties.

At the time, Finbar said the project was expected to net $16 million in profit, of which $8 million would go to the company, boosting earnings in the 2009-10 financial year.

In November last year, the company upped its stake in the project from 50.2 per cent to 63.7 per cent, after one of the smaller investors was bought out by the other shareholders.