A statement by the consortium is copied below:
JOINT VENTURE ACQUISITION OF 36-40 CHESTER AVENUE DIANELLA, Perth
12 JANUARY 2010:
A Finbar Group Limited (ASX: FRI) lead joint venture has secured the purchase of the above mentioned land for $4,830,000.
The property is a 7,800 sqm site located 7km north of the Perth CBD and adjoins the Dianella Plaza Shopping Centre. The property has dual street frontages, and is in very close proximity to local schools, reserves, public transport, and the Mount Lawley Golf Course.
The acquisition will see a special purpose joint venture company acquire the property and seek development approval to redevelop the land into approximately 60 to 70 residential apartments plus some additional commercial space.
The joint venture company is 50% owned by Finbar Group Limited and 50% by LHK Holdings Australia, a party which Finbar has an established relationship through the former successful joint venture development of The Saint project in East Perth, and the company’s current Currambine project.
Finbar will manage the redevelopment, share equally in the development profit, and earn a management fee.
Settlement will occur in April 2011 and development application works will commence immediately.
Finbar Managing Director, Darren Pateman said “The company is pleased to have secured the purchase of a very well positioned development site so closely following our successful capital raising in December. The proposed development will give the company additional medium price point development stock to bolster earnings in FY2014.”