Mustera Property Group has made significant progress on its North Fremantle Verse on McCabe development, completing demolition and piling works while securing $44.1 million in pre-sales and activating a new construction finance facility.
- Verse on McCabe demolition and piling substantially completed
- Pre-sales contracts reach approximately $44.1 million
- Operating cash outflows of $2.4 million for the quarter
- New construction finance facility secured post-quarter
- Loan facilities fully drawn at $18.4 million
Verse on McCabe Project Hits Key Milestones
Mustera Property Group Ltd (ASX:MPX) has advanced its flagship 42-apartment Verse on McCabe residential development in North Fremantle, marking the June 2026 quarter with several critical construction milestones. Demolition on the site was completed, the builder’s on-site offices established, and piling works were substantially progressed by quarter end. These developments set the stage for the next phase of construction as the company continues to push toward project completion.
Marketing efforts remain robust, with pre-sales contracts now totaling approximately $44.1 million, including an additional $8.8 million inked during the quarter. This sustained buyer interest is vital as the company navigates the capital-intensive construction period.
Financials Reflect Construction Phase Cash Burn
Mustera reported operating costs of about $2 million and marketing expenses of $141,000 during the quarter, alongside operational overheads of $546,000 encompassing staff and administrative costs. Interest and finance costs added another $219,000 to the outflows. The net cash used in operating activities was $2.4 million, reflecting the typical cash burn associated with active construction projects.
Despite the cash outflows, Mustera drew $2.7 million from borrowings this quarter, contributing to total drawn loan facilities of $18.4 million. The company’s financing arrangements include several secured loan facilities with varying interest rates and maturities, including agreements with NAB and private lenders.
New Construction Facility and Funding Outlook
Significantly, subsequent to the quarter end, Mustera executed a construction facility agreement with PAG to support funding requirements over the life of the Verse on McCabe project. No amounts had been drawn from this facility at the report date, but it provides a critical financial buffer for ongoing development costs.
The company acknowledges that net operating cash outflows are expected to continue in line with construction activities. However, Mustera remains confident in its ability to continue operations and meet business objectives, supported by ongoing marketing efforts and sales of its property inventory, including the remaining commercial lot at Forbes Residences in Applecross.
Liquidity and Capital Structure
At quarter end, Mustera held cash and cash equivalents of $2.83 million and had $54,000 in unused financing facilities, providing a total available funding pool of approximately $2.88 million. This equates to an estimated 1.2 quarters of funding based on current operating cash flows. The company’s capital structure remains stable with 146.8 million ordinary shares on issue.
Payments to related parties, including directors’ remuneration, totalled $104,000 for the quarter, consistent with prior periods. The company continues to monitor its cash position closely as it advances its development pipeline.
Bottom Line?
Mustera’s progress on Verse on McCabe and new construction financing provide a runway for completion, but sustained sales momentum and careful cash management will be critical in the coming quarters.
Questions in the middle?
- Will Mustera’s pre-sales momentum sustain through the construction phase to support cash flow?
- How will the new PAG construction facility impact the company’s liquidity and financing costs?
- What is the outlook for marketing and sale of the remaining Forbes Residences commercial lot?