Finbar unlocks Garden Towers cash flow after clearing project debt

Garden Towers debt facility fully repaid

Finbar Group Limited (ASX:FRI) has reached a significant funding milestone at Garden Towers, fully repaying the East Perth development facility as apartment settlements get underway. The move leaves the project's remaining completed stock debt-free and opens a clearer path for settlement proceeds to flow back to Finbar and its joint venture partner, Ventrade Australia.

“Garden Towers by Finbar”

Settlements completed so far represent approximately 86% of contracted apartments and $170.5 million in sales, according to the company. Finbar said further settlements and sales of remaining stock are expected to progressively return capital to the two 50% joint venture partners, although the announcement does not disclose the debt amount repaid or the cash returned to Finbar.

Settlements set up H1 FY27 earnings contribution

The timing matters for Finbar's next reported result. Revenue recognition associated with the settlements is expected to contribute positively to the company's H1 FY27 financial performance, though the announcement provides no project-level profit, margin or cash-flow figures. The project had already reached the completion and title stage in the company's 342-lot Garden Towers completion update last month, which cleared the way for settlements.

Garden Towers is Finbar's largest development by lot count in its more than 30-year history, comprising 329 residential apartments and 13 ground-floor commercial lots. The project has an estimated end value of approximately $296.9 million and includes the retained heritage-listed former Materials Science Building, proposed to be reconfigured into five office or commercial lots.

Remaining apartments still require a managed sell-down

Finbar said approximately 18% of all apartments remain unsold and will be sold progressively, with recent sales activity cited as evidence of ongoing buyer demand. That leaves the company balancing two objectives: converting contracted apartments into cash through settlement while maintaining pricing discipline on the remaining inventory. The announcement does not provide a timetable for the remaining sales or settlements.

Garden Towers sits within a remaining five-year development pipeline valued at approximately A$1.7 billion. Chief executive Ronald Chan said FY27 is expected to be active across settlements, construction and new project launches, but the next concrete test will be how much of Garden Towers' expected contribution appears in the first-half accounts and how quickly capital is distributed from the now debt-free completed stock.