Finbar strikes JV for CBD apartments

Finbar Group has signed a joint venture agreement with a Singapore-based developer to purchase 1,697 square metres of land in the CBD for $6.5 million, which Finbar estimates will have an end value of $71 million once developed.

Finbar struck a 50-50 JV deal with Chuan Hup Holdings’ subsidiary Ventrade Australia to acquire the site at 240 Adelaide Terrace, which is set to be developed into approximately 115 residential apartments across 28 levels, with additional lower level commercial office space.

Design works for the site have already begun and it is anticipated that an approval will be sought early in 2020.

Construction is expected to start in the second half of 2020.

Chuan Hup is a major shareholder of Finbar, with a 20.53 per cent stake.

Finbar and Ventrade have been JV partners at several projects including Reflections, Adagio, Toccata, and Concerto in East Perth and most recently on the Unison and One Kennedy developments in Maylands.

Finbar managing director Darren Pateman said the company was actively looking for the right opportunity in the city to continue its development of the precinct.

“It is also timely now that Vue Tower is complete and we are in the positive position of running out of inner-city stock,” he said.

“The development of this key site will result in Finbar having an uninterrupted redevelopment run in the City of Perth since it entered the market with the redevelopment of the former Freemasons building in Terrace Road into Westralian Apartments 15 years ago.

“This site is particularly well positioned just two blocks walk from the CBD and offers potential residents and investors expansive views across the Swan River and city from the upper levels within an existing town planning scheme that will accommodate our proposal.” 

Mr Pateman said he expected the state government’s announcement this week to offer a 75 per cent stamp duty rebate for off-the-plan apartment buyers would boost apartment sales in the local market.

Shares in Finbar were flat at noon AEDT, to trade at 88 cents each.