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Finbar Group (ASX:FRI) - Managing Director, Darren Pateman
Managing Director, Darren Pateman
Sourced: Business News
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  • Property developer Finbar Group (FRI) has completed its Sabina Applecross apartment complex project, as well as $60.5 million in pre-sales
  • The project comprises 167 one, two and three-bedroom apartments, as well as three commercial units
  • Settlements on pre-sold units are expected to contribute to revenue in the second half of 2020
  • The company has also withdrawn its guidance for 2020, citing the “unreasonable expectation” that property sales would continue at a pre-virus rate
  • Shares in Finbar have landed in the grey today, trading for 67.5 cents apiece

Property developer Finbar Group (FRI) has completed its Sabina Applecross project, as well as $60.5 million in pre-sale settlements.

The real estate firm is focused on medium to high-density residential apartments and commercial properties in Western Australia’s Perth Metropolitan and Pilbara regions.

The 30-storey Sabina Applecross project is comprised of 167 one, two and three-bedroom apartments, as well as three commercial units.

$350m apartment tower Sabina to be the tallest building in Applecross
Sourced: Domain

Titles have already been issued for the Sabina complex, and more than 50 per cent in pre-sales have been secured to date.

Sales so far have reportedly been dominated by owner-occupiers largely drawn from within a five-kilometre radius of the complex’s Canning Bridge location. Roughly 30 per of current sales have been attributed to real estate investors.

Finbar also noted that construction of its Riverena and One Kennedy projects is progressing in line with the State and Federal Government’s COVID-19 mitigation directives. 

Despite the added safety precautions and policies that have been put in place, the company expects its One Kennedy project to reach completion before the end of the financial year. In which case, it will contribute to Finbar’s financial performance in the second half of 2020.

In addition to the completion of the Sabina Applecross development, Finbar has also withdrawn its 2020 guidance.

Citing an “unreasonable expectation” that sales will continue at a pre-virus rate, the company said that it was appropriate to rethink its outlook when short and long-term market conditions become clearer.

Darren Pateman, Managing Director of Finbar Group, commented on the current market instability.

“While the completion of Sabina in Applecross marked an important milestone for the company…the unprecedented economic impact of COVID-19 is expected to have a marked impact on confidence and sales activity on the Perth, national and global markets for some time.

“…we have decided to delay the launch of any new projects, including Civic Heart in South Perth, until there is a higher level of certainty regarding the ongoing impact of COVID-19 to the economy and market,” he said.

The company added that its corporate offices have remained fully-functional with the implementation of remote working and physical distancing measures.

Shares in Finbar have landed in the grey today, trading for 67.5 cents apiece at 11:29 am AEDT.

FRI by the numbers
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