West Leederville is becoming a development hot spot, with Finbar Group entering a joint venture for a $90 million apartment project located near three new commercial buildings.
West Leederville is becoming a development hot spot, with Finbar Group entering a joint venture for a $90 million apartment project located near three new commercial buildings.
Finbar plans to develop 142 apartments, plus three commercial strata lots, at a 4,000 square metre site at 172 Railway Parade, known as the former Hisco site.
The Finbar site is next door to the WA Local Government Association's recently-completed 6,500sqm head office, developed in a joint venture with QUBE Property Group.
Other developments nearby include Carcione Group's office building on the corner of Railway Parade and Thomas Street, and a smaller office building on the corner of Railway Parade and Southport Street.
The Finbar development will take place in a single stage, with plans for an eight and nine-level structure.
Finbar has entered into a development agreement with the landowner to split profit from the project on a 50-50 basis in exchange for use of the land.
Finbar will contribute $4.75 million in working capital, obtain development finance and carry out redevelopment of the property through a subsidiary.
Profit from the development is anticipated to contribute to Finbar's earnings in the 2016 and 2017 financial years.
Finbar managing director Darren Patemen said it was the right time for the developer to boost its supply pipeline, with its Ecco project in East Perth due for practical completion in the next few weeks and its Au project (also in East Perth) set to be completed within months.
Apart from Au, the largest Finbar project currently under construction is its $100 million Spring View Towers apartment development in Rivervale.
"We believe this West Leederville precinct is primed for renewed redevelopment activity, which will make it an even more desirable address to live in," Mr Patemen said.
"Our Subiaco project (Subi Strand) located 3 kilometres to the west has now achieved 132 sales in 10 weeks of marketing and we are confident this West Leederville project will have similar market appeal."
Design works have started and Finbar plans to seek development approval and begin marketing within six months.
The announcement comes weeks after Finbar obtained ministerial approval to revive its stalled Port Hedland apartment project, with plans to build more than 700 apartments in a 10-storey tower near the town centre.
Finbar shares were up 1.5 cents to $1.64 at 12:41pm WST.
