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- Finbar Group (FRI) has completed construction of the One Kennedy apartments in Maylands
- A total of 43 per cent of the apartments are now sold and Finbar has so far secured $23.5 million
- Settlements on pre-sold units will commence in June and revenue will contribute to its second-half FY20 earnings
- Despite a slight slump in real estate activity due to COVID-19, Finbar remains in a financially robust position
- This will ensure it has the flexibility to kickstart its $365 million Civic Heart Project in South Perth
- Finbar is down a slight 1.69 per cent and shares are trading for 62 cents each
Finbar Group (FRI) has completed construction of the One Kennedy apartments in Maylands.
The project comprises 123 one, two and three-bedroom apartments, and commercial buildings and has an end-value of $54.4 million across all lots.
Finbar Managing Director, Darren Pateman, welcomed the completion and said that sales at One Kennedy had so far been dominated by owner-occupiers who made up 80 per cent of sales to date, with almost 40 per cent of those buyers being first home buyers.
A total of 43 per cent of the apartments are now sold and Finbar has secured $23.5 million so far.
One Kennedy is located in one of Perth’s most popular city fringe suburbs with a thriving retail and cafe strip. It is situated within easy access of public transport and just four and a half kilometres from the Perth CBD.
Settlements on pre-sold units at the development are expected to commence in June. Revenue will contribute to the company’s second-half FY20 earnings.
“While the completion of One Kennedy is an important milestone for Finbar and the vibrant Maylands area, there will be an inevitable impact on sales confidence in real estate markets as we manage the ongoing effects of COVID-19,” Darren said.
Due to COVID-19, the company experienced a very quiet month in April. This isn’t accounting for smooth-sailing settlements at the Sabina Applecross apartments. These settlements will contribute to Finbar’s full fiscal year earnings.
“We are hoping the government recognises the importance of job creation that development and construction creates by extending the stamp duty rebate beyond off the plan sales to projects under construction and new completed stock to encourage commencements and allow vital capital to be redirected to new, job-creating projects for thousands of Western Australians,” he stated.
Finbar remains confident that Western Australia will recover more rapidly than other states.
The apartment developer also stands in a financially comfortable position. Once Maylands settlements commence in three weeks-time, Finbar will be entirely debt-free on $187 million of completed development stock, approximately half of that cash attributable to the company after joint venture interests.
The strong financial position gives Finbar the security it needs to proceed with its $365 million Civic Heart luxury apartments project.
Finbar is down a slight 1.69 per cent and shares are trading for 62 cents each at 2:20 pm AEST.
