Mustera reaches key construction milestones as final Forbes lot sale goes unconditional

Verse on McCabe moves from groundwork into construction

Mustera Property Group Ltd (ASX:MPX) has passed several visible construction milestones at Verse on McCabe, its 42-apartment, eight-storey development in North Fremantle. Piling, demolition and bulk earthworks were completed during the September quarter, the tower crane was erected and procurement of key subcontractors was finalised.

The company said construction was progressing in accordance with the programme, while the display suite reopened in late August and continued to generate buyer enquiries and inspections. The project had previously been positioned for a Q2 2026 construction start, after $15 million in Verse sales were reported earlier in the year.

Final Forbes commercial lot reaches unconditional sale

Mustera also has a cleaner position at Forbes Residences in Applecross. The final remaining commercial lot, Lot 3, was contracted for $2.4 million during the quarter and became unconditional after quarter end. Settlement is scheduled for November 2026; once completed, the company said it will hold no remaining development lots at the project and its development inventory will be fully realised.

That outcome follows a period in which Forbes Residences sales momentum helped drive the company’s reported revenue growth in the six months to December 2025. The latest transaction is not yet cash in hand, however, and its contribution remains tied to settlement completing as scheduled.

Construction spending keeps quarterly cash flow negative

Mustera recorded $738,000 in customer receipts but spent approximately $2.925 million on operating and property development activities, plus $119,000 on advertising and marketing. Staff and corporate overheads added $867,000, while interest and finance costs were approximately $403,000, producing net cash used in operating activities of $3.451 million.

Net investing cash flow was positive at $175,000, while financing activities provided $2.243 million after $3.264 million of new borrowings, $1 million of repayments and $21,000 in borrowing transaction costs. Cash fell from $2.827 million at the previous quarter end to $1.794 million at 30 September.

Funding headroom depends on development execution

Mustera reported total financing facilities of $91.81 million, with $20.65 million drawn and $71.16 million unused at quarter end. The largest facility is a secured $74.4 million non-revolving loan note subscription facility with PAG, carrying variable interest of approximately 4.7% on drawn funds and a 2.4% line fee on the peak limit. The company said $3.3 million had been drawn under that facility by the report date to progress Verse on McCabe.

The headline funding figure is therefore substantial relative to the quarter’s cash burn, but it is not the same as cash already held by the company. The next useful markers are the November settlement at Forbes Residences, further Verse on McCabe construction progress and whether subsequent drawdowns translate into delivery without a materially higher financing burden.