– Joint Venture project in Perth receives development approval.
– Approval received for 59 residential apartments plus four commercial lots.
– Marketing campaign to commence end of October 2013.
– Project completion anticipated mid 2015.
– ~$32 million end project value.
– Finbar to receive 50% of project profit plus management fee in FY15 / FY16.
Perth, 16 August 2013: Western Australia’s leading apartment development company, Finbar Group Limited (ASX: FRI) (Finbar or the Company) is pleased to announce that it has received development approval for 280 Lord Street in Perth.
The approval will allow for the construction of a $32 million one, two, and three bedroom boutique apartment project comprising a total of 59 residential apartments with an additional four ground floor commercial lots within a six level structure.
The development will take place on 2,828 square metres of prime land which is located on the corner of Lord and Windsor Streets in Perth and is owned by a subsidiary of Swanline Group (Swanline).
In April 2013, Finbar entered into a joint venture with the land owners, Swanline, which was conditional upon receipt of development approval. Now that approval has been received, the joint venture formally commences and Finbar will immediately proceed with preparation for a marketing campaign launch which is anticipated to commence in October 2013. The Company plans to commence construction on the project early in the 2014 calendar year.
Swanline and Finbar are also engaged in one other joint venture, the Ecco project, which is also located in Lord Street and only 300 metres from the new joint venture site. Commenting on the approval, Finbar Managing Director Darren Pateman said today, “The approval is well timed and allows our company to not only continue with a valued joint venture relationship with the Swanline Group but provides us with another project in very close proximity to our St Marks and Ecco projects, both of which have enjoyed a sell-out success.”
It is anticipated that construction will be completed within 15 months of commencement and that profits equal to one half of the project plus a management fee will fall into either the FY15 or FY16 period for Finbar.