The apartment developer said it would form a new joint venture to develop the site, which comprises 7,206 square metres across eight lots bordered by Mends Street, Labouchere Road and Mill Point Road.
Local government planning policies allow development of up to 41 storeys on the site.
Finbar said it would release more details of its proposal once the contract is finalised, while it also did not details regarding the successful consortium today.
The sale of the site was brokered by commercial agency JLL.
The City of South Perth is aiming to create a mixed use development at the site, incorporating retail, commercial and residential aspects, as well as public amenities.
Proceeds from the sale will be used by the City of South Perth to fund capital works improvements across the area.
It is expected that formal sale documentation will be finalised once a formal advertising process is conducted, in accordance with the Local Government Act.
“The proposed acquisition of this site presents Finbar with a very rare and exciting opportunity to create South Perth’s new civic heart,” Finbar managing director Darren Pateman said.
“We recognise the need for our proposed project and acknowledge and respect the responsibility that the City of South Perth and the local community are placing on Finbar and our partners to deliver an outstanding mixed-use opportunity.”
Finbar shares were largely steady in early trade this morning, with the stock trading at $1.67 at 10:15AM, WST.