Construction kicks off at Romeo as Finbar locks in $121.1 million in pre-sales
Finbar Group Limited (ASX: FRI) has commenced construction at its Romeo development in Applecross, Perth, with 103 sales secured since the public launch in March 2026, representing 66% of the 155-lot project sold. Pre-sales total $121.1 million against an estimated end value of approximately $192 million, with project completion anticipated in H1 FY2029. Romeo forms part of Finbar’s five-year development pipeline valued at A$1.95 billion.
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Romeo development at a glance
Romeo comprises 152 residential apartments across one-, two- and three-bedroom configurations, alongside three ground-floor commercial lots, all of which have been sold. The development is situated metres from the Swan River and in close proximity to Canning Bridge Station, offering residents convenient access to public transport and surrounding amenity.
The project represents the third and final stage of Finbar’s Applecross Precinct, following the successful delivery of Sabina and Aurora. Across the precinct, Finbar has delivered The Lane, a landscaped pedestrian link connecting Canning Highway and Kintail Road, culminating in a new public plaza. Precinct connectivity is expected to be further improved by a proposed Swan River ferry service, scheduled to commence by the end of 2027.
| Metric | Detail |
|---|---|
| Total lots | 155 (152 residential + 3 commercial) |
| Pre-sales to date | $121.1 million / 103 lots |
| Percentage sold | 66% |
| Estimated end value | ~$192 million |
| Completion target | H1 FY2029 |
Sales momentum holds despite policy headwinds
The May 2026 Federal Budget’s negative gearing and CGT reforms introduced a degree of market uncertainty, yet Finbar’s recent sales activity points to resilient underlying demand for its mid-market product.
Finbar’s record H1 FY26 sales of $368 million across 409 lots, representing a 297% increase year-on-year, established the demand backdrop against which Romeo’s 66% pre-sale rate should be read.
Key recent sales metrics include:
- 18 lots sold at Romeo between 1 August and the announcement date, totalling $26.3 million, with investors accounting for approximately 50% of purchasers
- 37 sales across both off-the-plan and completed stock achieved group-wide over the same period, totalling $44.3 million
- Finbar’s total pre-sales value now stands at $536 million, representing approximately 67% of available product sold across current projects
This activity, in the context of broader market uncertainty, provides a positive indication of continued buyer appetite for Finbar’s developments in well-located, established precincts.
What is an apartment pre-sale and why does it matter?
A pre-sale, or off-the-plan sale, occurs when a buyer contractually commits to purchasing a property before construction is complete. The buyer typically pays a deposit upfront, with the balance settled upon completion.
For property developers, pre-sales perform several important functions:
- De-risking the project by securing committed revenue before significant capital is deployed
- Satisfying lender requirements, as banks typically require a minimum level of pre-sales before releasing construction finance
- Providing revenue visibility, which supports project planning and cost management
In Romeo’s case, with 66% of the development sold prior to construction commencing, the project has already substantially reduced its financial risk profile relative to its approximately $192 million estimated end value.
Romeo’s role in Finbar’s $1.95 billion pipeline
Romeo is one element of a considerably larger development programme. Finbar’s five-year pipeline spans more than 1,900 units across multiple projects, with a combined value of A$1.95 billion, providing meaningful earnings visibility and growth continuity.
The West Leederville development, a wholly-owned $230 million twin-tower project with a DA lodged in April 2026, represents another pipeline contributor targeting FY2029/FY2030 earnings alongside Romeo’s H1 FY2029 completion.
The company brings more than 30 years of experience to this pipeline, having delivered 80 landmark developments and over 7,600 apartments worth $4.6 billion in Western Australia. That track record underpins the confidence management has expressed in the company’s ability to progress its current portfolio.
Ronald Chan, Chief Executive Officer
“Supported by a substantial five-year development pipeline and our disciplined approach to capital management, we are well positioned to progress our current projects and continue delivering sustainable, long-term value for shareholders.”
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