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Finbar Group (ASX:FRI) completes Riverena apartments

New Developments, Real Estate
ASX:FRI      MCAP $216.3M
23 October 2020 18:30 (AEST)
Finbar Group (ASX:FRI) - Managing Director, Darren Pateman

Sourced: Business News

Finbar Group (FRI) has reached practical completion for its Riverena apartments in Rivervale.

The project includes 125 apartments that range from one, two and three-bedrooms and have an end value of $52 million across all residential lots.

The company managed to secure 56 apartments in a pre-sale, all worth $22.2 million in total, with the sales yaking place despite the impact of COVID-19.

Settlement of the entire 56 apartments are expected to be completed in November, meaning they will contribute to the 2021 financial year earnings.

Finbar Managing Director, Darren Pateman, said the 10-storey development was completed right on schedule.

“The Riverena project is part of a significant investment in the growing Rivervale precinct which will benefit local residents and businesses in the area, and will lead on to the continuation of our developments in the precinct on other land in which we have an interest,” he said.

“The sales secured at the project to date indicate a growing confidence in the market which can be attributed in part to recent government stimulus measures and the strength of the WA economy in relation to other states and countries,” he added.

Significantly, Finbar believes October is on track to be its largest sales month in two years, which points to the gradual recovery of the Perth residential market.

Source: Finbar

“We commend the State Government’s handling of the COVID crisis, which has helped restore buyer confidence and investment in the State,” Darren said.

“However, we believe that for the WA market to maintain sustained growth, we need to see the return of investors to the local market in more than nominal numbers which will help satisfy the high demand for property rentals at present,” he added.

On market close for the weekend, Finbar is down 1.37 per cent and is trading for 72 cents per share.

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