Garden Towers development facility fully repaid as settlements drive debt-free stock
Finbar Group Limited (ASX: FRI) has announced that the development facility for its Garden Towers project in East Perth has been fully repaid following the commencement of settlements. The remaining completed stock is now debt-free.
Settlements completed to date represent approximately 86% of all contracted apartments, representing approximately $170.5 million in sales. Further settlements and associated profit recognition are expected to contribute positively to Finbar’s H1 FY27 financial performance.
Garden Towers is a 50% joint venture between Finbar and Ventrade Australia Pty Ltd, a wholly owned subsidiary of Chuan Hup Holdings Limited.
The Garden Towers completion milestone saw strata titles issued across all 342 lots, the step that opened the way for settlements to begin.
Ronald Chan, Chief Executive Officer
“The full repayment of the Garden Towers development facility is a significant financial milestone and reflects the strong progress achieved since settlements commenced…”
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What debt-free stock means for capital returns
Capital back to Finbar and its joint venture partner
Further proceeds from settlements of contracted apartments and the sale of remaining stock will progressively return capital to Finbar and Ventrade Australia Pty Ltd. With the remaining completed stock debt-free, the facility no longer sits against those sales.
Settlement and sell-down snapshot
Key figures from the announcement:
- Approximately 86% of all contracted apartments settled
- Approximately $170.5 million in sales from settlements completed to date
- Remaining unsold apartments representing approximately 18% of all apartments within Garden Towers
- Development facility fully repaid
The remaining apartments will continue to be sold down progressively. According to the company, recent sales activity provides “further evidence of ongoing buyer demand”, with Finbar well positioned to manage the sell-down “with appropriate pricing discipline”, while continuing to realise capital from the project.
Garden Towers at a glance: Finbar’s largest development by lots
Valued at approximately $296.9 million, Garden Towers is Finbar’s largest development by number of lots in its more than 30-year history. It comprises 329 residential apartments and 13 ground-floor commercial lots.
Located opposite Queens Gardens, the development has transformed a prominent East Perth site into a residential community within easy reach of the Perth CBD, Swan River and the revitalised WACA precinct.
| Feature | Detail |
|---|---|
| Location | East Perth, opposite Queens Gardens |
| Residential apartments | 329 |
| Ground-floor commercial lots | 13 |
| Estimated end value | Approximately $296.9 million |
| Structure | 50% joint venture |
The heritage-listed former Materials Science Building has been retained within the ground-floor development. It is proposed to be reconfigured into five separate lots, providing flexibility for future small office/home office (SOHO) and commercial uses.
Grand Opening in October
In October, Finbar marked the official Grand Opening of Garden Towers at an event attended by purchasers, project partners, stakeholders and special guests. Lord Mayor of Perth Bruce Reynolds acknowledged the significance of the development for East Perth and the broader Perth apartment market.
The Hon John Carey MLA, Minister for Planning and Lands; Housing and Works; and Health Infrastructure, also toured the development.
Finbar’s FY27 outlook and A$1.7 billion pipeline
Finbar’s remaining five-year development pipeline is valued at approximately A$1.7 billion. Mr Chan said the company’s residential products reflect its focus on quality and affordability, and are well positioned in the current market conditions.
He added that Finbar continues to see strong buyer demand across its portfolio, including from repeat customers. Forward items stated in the announcement:
Development approval for Leeder Residences in West Leederville, a twin-tower wholly-owned project with pre-sales due in 2H CY2026, shows how the pipeline is moving into market.
- Further settlements and associated profit recognition are expected to contribute positively to H1 FY27 financial performance.
- The remaining approximately 18% of apartments will continue to be sold down progressively.
- FY27 is expected to be an active year across settlements, construction and new project launches.
- The heritage-listed former Materials Science Building is proposed to be reconfigured into five separate lots.
Shareholders and investors can engage with the management team on this announcement via the link in the company’s release.
Ready to Learn More About Finbar’s Garden Towers Success?
With the development facility fully repaid and approximately 86% of contracted apartments settled, Garden Towers is delivering about $170.5 million in sales and debt-free remaining stock. Backed by a $1.7 billion development pipeline, Finbar is positioning FY27 as an active year.
Explore the Finbar Group company profile on StockWire X to see the latest announcements and project updates. Discover how settlements and upcoming launches could shape the company’s next phase.