Mustera Awards Builder for $20m Verse on McCabe Sales as Construction Nears

Construction Contract Awarded for Verse on McCabe

Mustera Property Group (ASX:MPX) has reached a key milestone in its North Fremantle development with the appointment of Thomas Building Pty Ltd as the builder for its 42-apartment Verse on McCabe project. Construction is slated to begin in the second quarter of 2026, targeting a build period of approximately 28 months. Thomas Building is known for its track record in delivering quality residential projects across Western Australia, which bodes well for Mustera’s ambitions in the competitive Fremantle market.

Strong Sales Momentum Continues

The March quarter saw Mustera contract an additional $20.3 million in sales for Verse on McCabe, lifting cumulative contracted sales to $44.1 million. This surge in sales reflects sustained demand and effective marketing efforts, including high visitation to the on-site display suite. The sales performance builds on prior momentum, following earlier contracts totalling $15 million and $10.2 million in preceding quarters, underscoring the project’s appeal despite broader market uncertainties. The company’s ability to convert inquiries into contracts will be critical as construction ramps up.

Settlements Advance Forbes Residences Progress

At Mustera’s Forbes Residences development in Applecross, the group settled one final residential apartment for $2.16 million and a commercial unit for $1.2 million during the quarter. With only one commercial lot remaining, a fresh marketing campaign is planned to target prospective buyers. The steady progress in settlements at Forbes Residences complements the North Fremantle project’s trajectory and contributes to Mustera’s overall sales pipeline.

Operating and Financing Costs Impact Margins

Mustera reported operating costs of approximately $678,000 and marketing expenses of $165,000 for the quarter, reflecting ongoing development and promotional activities. Staff and corporate overheads totalled $343,000. Notably, interest and finance costs reached $2.41 million, primarily attributable to retiring the Harvis Loan Facility. This elevated interest expense highlights the financial burden of the group’s debt structure amid rising borrowing costs. The company maintains secured loan facilities totalling $15.68 million, with only $54,000 unused, including commercial facilities with NAB and a private lender.

Positive Cash Flow and Liquidity Position

Despite the interest costs, Mustera generated positive net cash from operating activities of $2.07 million for the quarter, supported by contracted sales and settlements. Cash and cash equivalents stood at $2.49 million at quarter end, providing a degree of liquidity as construction commences. The company’s ability to sustain this cash flow and manage financing obligations will be a key focus as it transitions from pre-construction to active building phases. The group’s recent sales and cash flow trends build on its prior half-year revenue growth and operational progress documented in the boosts revenue 45 percent and $15M in sales reports.