FINBAR Group has been given the go ahead to acquire and develop the $300 million mixed use Civic Triangle development in South Perth
A Finbar led consortium comprising a select group of established Finbar joint venture partners was the City of South Perth in a public tender process and has now concluded formal documentation to unconditionally acquire the site with settlement in 30 days.
Finbar’s joint venture partners will acquire the site for $27,310,000 from the City, with Finbar entering a land-owner development agreement with the partners to create an iconic development on the land.
The land owner partners will contribute $40 million in equity to fund the acquisition of the land, unencumbered, and provide for additional working capital. Finbar, through a wholly owned subsidiary, will contribute an additional $20 million in cash equity for additional working capital, securing development finance and carrying out the redevelopment of the site.
Finbar and the land owners will share equally in the development profit with Finbar also earning a management fee.
The Civic Triangle site is a 7,206 sqm site is currently owned by the City, comprising nine separate lots.
The project is expected to deliver a 30-level apartment tower comprising 295 units with an end value exceeding $300 million.
“We have acquired what will become Finbar’s most exciting individual single stage project to date and our partners and entire Finbar team are very enthusiastic about creating South Perth’s new civic heart,” CEO Darren Pateman said.
The Civic Triangle project has been concluded following a very successful year for Finbar with the Company recently upgrading its guidance to announce it is forecasting to achieve a record net profit after tax of approximately $36 million with $61 million in cash on the balance sheet for the financial year ended 30 June 2014.
Property Review
