Finbar Group Ltd Settles $402M South Perth Development Site

Finbar settles $402M South Perth development site opposite Civic Heart

Finbar Group (ASX: FRI) has completed settlement of a prime South Perth development site, following its initial ASX announcement dated 22 December 2025. The approximately 4,093sqm site carries an estimated end value of approximately $402 million as a wholly-owned Finbar project.

Located at 18-22 Bowman Street and 19 Labouchere Road, South Perth, the acquisition strengthens the company’s development pipeline in one of Perth’s most sought-after residential markets.

Inside the settlement — key deal terms

The site was acquired by a wholly-owned Finbar entity following satisfaction of the conditions precedent contained within the sale agreement. The transaction adds another strategically located parcel to the company’s Western Australian portfolio.

The seller has entered into a leaseback arrangement at market rates for an initial two-year term, with a further six-month option. This provides Finbar with a holding income stream that offsets site holding costs while concept design and statutory approvals are progressed.

Importantly, the leaseback period gives the company flexibility to develop a considered and optimised design outcome for the site, while aligning project timing with its five-year development pipeline.

A prime position in the South Perth Activity Centre

Positioned within the South Perth Activity Centre, the site occupies a strategically located parcel directly opposite Finbar’s award-winning Civic Heart development. The location places it among established residential and lifestyle amenity.

Key proximity data points include:

• Approximately 300 metres from Perth Zoo

• 100 metres from the Mends Street shopping precinct

• 400 metres from the South Perth ferry terminal and Swan River

The South Perth Activity Centre planning framework supports a range of high-density development outcomes, including discretionary height limits and significant plot ratio opportunities. Finbar intends to progress planning and design work for a substantial residential apartment development that leverages the site’s prominent location, connectivity and surrounding amenity.

Why South Perth matters to Finbar’s growth strategy

Apartment developers create value across multi-year cycles. The process typically begins with securing prime sites, progressing statutory approvals, then launching and delivering projects that contribute to earnings once construction completes. Each stage carries its own timeline and risk profile.

The Garden Towers topping out milestone in East Perth illustrates how Finbar’s multi-year development cycle converts site acquisitions into contracted revenue: 81% presales and $208 million in contracted sales were locked in ahead of H1 FY2027 settlements on its largest-ever project.

The leaseback structure offers a practical benefit for investors. By generating a holding income stream, it reduces the cost drag of owning a site while concept design and approvals mature, allowing Finbar to optimise the eventual development outcome without pressure to rush the planning phase.

This project contributes to Finbar’s five-year development pipeline of approximately $1.95 billion in end value across five projects. It builds on a track record spanning more than 30 years, 80 landmark developments and over 7,600 apartments worth $4.6 billion, including a strong presence in South Perth through Perth’s tallest residential building, Civic Heart, and more recently 19-25 Lyall Street.

Ronald Chan, Chief Executive Officer

“Completion of settlement represents an important milestone in securing another strategically significant development opportunity in South Perth. Finbar has a long and award-winning history of delivering apartment developments in South Perth, including Perth’s tallest residential building, Civic Heart, and most recently 19-25 Lyall Street. We believe this new site presents an opportunity to create long-term value for shareholders while delivering high-quality housing in one of Perth’s most sought-after residential locations. Finbar views South Perth as a critical component of our development pipeline, reflecting its proximity to the Perth CBD and Swan River, established amenity and a mature, affluent demographic with a high proportion of owner-occupiers. The Company’s strong balance sheet continues to provide flexibility to pursue attractive acquisition opportunities that align with our disciplined capital allocation framework and long-term growth strategy.”

What’s next — timeline to delivery

The path from settlement to earnings contribution follows a defined roadmap:

1. Progress concept design and statutory approvals during the leaseback period

2. Targeted market launch in mid-2028

3. Anticipated earnings contribution in FY2031 or FY2032, subject to development approvals, delivery timing and market conditions

The acquisition reflects the disciplined capital allocation framework underpinning Finbar’s growth strategy. According to management, the company’s strong balance sheet continues to provide flexibility to pursue attractive acquisition opportunities aligned with that framework.

For investors, the settlement adds another strategically significant South Perth asset to a well-defined pipeline, with the leaseback arrangement designed to manage holding costs while design and approvals progress. Shareholders and investors can engage with the management team on this announcement through the channels referenced in the company’s release.

For investors exploring how Finbar converts a settled site into a launched project, our detailed coverage of Leeder Residences traces the full sequence from DA lodgement through to the development approval and pre-sales launch, with a $265 million end value project at a comparable stage of the pipeline.

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