Finbar to build East Perth apartments

Apartment developer Finbar Group has reached a joint venture agreement with Heyspring International to build 190 new residential apartments in East Perth.

In a statement to the Australian Securities Exchange, Finbar said the two 10 storey apartment buildings will be built on land at 208 Adelaide Terrace and 311 Hay Street.

The site is opposite the Sheraton Hotel on Adelaide Terrace and the Perth Mint on Hay Street.

A separate company, 60 per cent owned by Finbar and 40 per cent owned by joint venture partner Wembley Lakes Estates Two, will acquire half the land from Heyspring.

The joint venture company, known as 208 Adelaide Terrace, will receive 75 per cent of the total development profit.

Finbar's managing director Darren Pateman said that securing the JV was an important strategic opportunity for the company.

"It is an exceptional site, of a scale that allows us to capitalise on our competitive advantages, in an area in which we have a sound understanding of the challenges and the market," he said.

"These types of joint ventures allow Finbar to maximise the earnings potential of our capital and leverage off our intellectual property to provide our shareholders with a solid return on equity," said Mr Pateman.

Finbar said it would seek development approval for the apartments immediately.

It hopes to start construction in the middle of next year.