Finbar Secures $402M South Perth Site to Boost $1.95B Pipeline

Strategic Acquisition Strengthens South Perth Footprint

Finbar Group Limited (ASX:FRI) has added a significant parcel to its South Perth portfolio, completing settlement on a 4,093sqm site valued at an estimated $402 million upon project completion. The site, located at 18-22 Bowman Street and 19 Labouchere Road, sits opposite Finbar’s award-winning Civic Heart development, reinforcing the company’s foothold in one of Perth’s most sought-after residential precincts.

South Perth’s appeal lies in its proximity to the CBD, Swan River, and lifestyle amenities including the Perth Zoo and Mends Street shopping precinct. The location benefits from the South Perth Activity Centre planning framework, which permits high-density development and discretionary height limits, offering Finbar substantial scope to optimise design and deliver a landmark residential project.

Leaseback Provides Income and Flexibility

In a move that cushions holding costs and buys time for design and approvals, the seller has entered a leaseback arrangement at market rates for an initial two-year term, with an option for an additional six months. This arrangement aligns development timing with Finbar’s broader five-year pipeline, currently valued at $1.95 billion, allowing the company to carefully plan and position the project for market conditions.

Development Timeline and Market Launch

Finbar targets a market launch for the South Perth project in mid-2028, with completion anticipated in FY2031 or FY2032, subject to approvals and market dynamics. The project’s scale and timing suggest it will be a meaningful contributor to Finbar’s earnings in the early 2030s, complementing other developments in its pipeline.

CEO Ronald Chan highlighted the strategic importance of South Perth, noting Finbar’s track record of delivering high-quality apartments in the area, including Perth’s tallest residential building. The company’s strong balance sheet remains a key enabler for pursuing such opportunities, underpinning its disciplined capital allocation and long-term growth ambitions.

Pipeline Expansion and Market Position

This latest acquisition builds on Finbar’s recent momentum, following a series of project milestones including a $265 million West Leederville development and a completed $114 million Belmont project. The South Perth site adds significant heft to the company’s metropolitan pipeline, positioning it well for sustained growth in Western Australia’s apartment market.