Finbar to buy apartment site from JV partner
Finbar is acquiring a 1.36 hectare block abutting an apartment project it sold out.
The Palmyra site, four kilometres east of Fremantle, cost $5.5 million ex-GST.
The seller was its joint venture partner, West Coast Eggs Pty Ltd.
Neighbouring Woolshed Park, it is permit-ready for 130 dwellings in four buildings – branded ‘stage 2’ in an image released regarding the announcement.
The deal is subject to Foreign Investment Review Board approval.
Finbar sold out of its neighbouring resort-style Palmyra Apartments East development, with 128 units, completed in 2019 (impression, top).
Full control
Finbar chief executive officer Ronald Chan said developing the new site, 45 McGregor Road, should boost its FY28 earnings.
The end value is $88 million, according to the executive.
“We thank [West Coast Eggs Pty Ltd] for their collaborative role in delivering the successful first stage of our Palmyra precinct and for their ongoing support as an important stakeholder in urban infill,” he added.
“Finbar continuously monitors both the off-the-plan and established apartment markets where it is active, with the last six months reflecting strong growth in the Palmyra area that is expected to underpin our marketing campaign.
“With West Coast Eggs pursuing a different industry focus, this transaction has presented Finbar with the opportunity to leverage our strong balance sheet to activate a shovel-ready site and convert it into a wholly-owned development that delivers greater value to shareholders.
“Importantly, this acquisition strengthens the delivery certainty of a strategic, high-quality project within our diversified development pipeline and underpins Finbar’s ongoing role in meeting Perth’s medium-density housing demand”.
Walking distance to a Woolworths anchored retail precinct and Royal Fremantle Golf Club, Palmyra is about 16 kilometres south west of Perth’s CBD.
The deal comes a week since we reported Finbar banked $13.68m selling a Rivervale, Perth, site to a community housing provider and outlaid nearly $16m for a West Leederville ex-theological college, with plans for apartments.
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