Finbar Group Limited (ASX:FRI) Announces Settlement of South Perth Development Site
In an ASX announcement, Finbar Group Limited (ASX:FRI) confirmed it has completed settlement on a strategically located Finbar South Perth development site at 19-25 Lyall Street, marking a significant milestone in the company’s $1.2 billion five-year development pipeline. The wholly-owned project carries an estimated end value of approximately $187 million, representing one of the company’s substantial near-term development opportunities.
Settlement follows Finbar’s conditional acquisition announcement from August 2025, removing the uncertainty associated with due diligence and transaction completion. The approximately 2,385 square metre site is now fully under the company’s control, positioning it for the targeted market launch in CY2026 with anticipated completion in mid-CY2029.
This completion demonstrates concrete progress in converting pipeline opportunities into active projects. For property developers, the distinction between conditional acquisitions and settled sites is significant—settled sites represent materially lower execution risk as land acquisition is finalised and site control is secured.
Key Project Metrics
- Estimated end value: $187 million
- Site area: 2,385 square metres
- Market launch: CY2026 (targeted)
- Completion: Mid-CY2029 (anticipated)
- Ownership: 100% Finbar (wholly-owned)
This acquisition reinforces the company’s ability to execute on announced plans and provides enhanced pipeline visibility for investors. The project timeline positions revenue recognition primarily across the 2027-2029 period as construction progresses and apartment settlements occur.
What is the Estimated Value of the Finbar South Perth Development Site?
The development carries an estimated end value of approximately $187 million as a wholly-owned Finbar project. This represents the anticipated gross development value upon project completion, encompassing total expected sales proceeds from the finished development.
End value in property development refers to the aggregate sales value of a completed project. For residential developments, this typically encompasses all apartment sales, any commercial components, and associated revenue streams. The figure represents gross proceeds rather than net profit after development costs.
The “wholly-owned” designation means Finbar retains 100% economic interest in the project. This contrasts with joint venture arrangements where development economics are shared. Full ownership provides undiluted exposure to development margins whilst also concentrating risk within a single entity.
Wholly-Owned Structure
Full project ownership means Finbar captures the entire development margin without sharing profits with joint venture partners, providing complete exposure to project economics. Property developers typically work to gross profit margins ranging from 15% to 25%, depending on project complexity, market conditions, and cost management. However, these margins are subject to numerous variables over the multi-year development period.
The $187 million estimated value represents a meaningful revenue opportunity over the 2026-2029 period. For context, Finbar Group Limited currently maintains a market capitalisation of approximately $235 million with approximately 272 million shares on issue. The South Perth project, therefore, represents a development with an estimated value approaching 80% of the company’s current market capitalisation, highlighting its materiality. Furthermore, the company reported a cash position of approximately $59 million as at November 2025.
How Does the Finbar South Perth Development Site Contribute to the Company’s Pipeline?
The settlement positions the South Perth project within Finbar’s $1.2 billion five-year development pipeline. This pipeline represents the company’s portfolio of current and planned projects at various stages, from land acquisition through to completion and settlement.
The targeted CY2026 market launch aligns with Finbar’s pipeline sequencing, providing visibility on project delivery timing and revenue recognition windows across the medium term. Pipeline depth is a critical indicator for investors assessing a developer’s future revenue and earnings visibility. South Perth offers strategic location advantages as an established residential precinct in close proximity to Perth’s central business district.
Pipeline Component Analysis
| Pipeline Component | Detail |
|---|---|
| Total five-year pipeline | $1.2 billion estimated value |
| This project contribution | $187 million (15.6% of total) |
| Project status | Settled (November 2025) |
| Development stage | Planning/approvals phase |
| Timeline | 2026 launch → 2029 completion |
The settlement demonstrates concrete progress converting pipeline opportunities to active projects. The Lyall Street site now represents a lower execution risk component as land acquisition is completed and site control is secured.
The project’s contribution of $187 million represents approximately 15.6% of Finbar’s total $1.2 billion five-year pipeline. This indicates a meaningful but not dominant position within the portfolio, suggesting appropriate project diversification.
Understanding Development Pipeline in Property Investment
A development pipeline represents a property company’s portfolio of current and planned projects at various stages. These stages typically include land banking, planning and approvals, construction delivery, and sales completion with settlement.
Pipeline depth and quality are critical indicators for investors assessing a developer’s future revenue and earnings visibility. Without a robust pipeline, developers face revenue gaps between project completions, creating earnings volatility and limiting growth potential.
Development Pipeline Stages
- Land banking: Sites acquired or controlled for future development
- Planning: Design finalisation and regulatory approvals
- Construction: Physical project delivery
- Sales/completion: Revenue recognition as apartments settle
For Finbar, the $1.2 billion five-year pipeline provides medium-term growth visibility extending into the late decade. The South Perth site has now progressed from a conditional acquisition to a settled site—a concrete advancement through the pipeline staging process.
The next stage involves planning optimisation and securing necessary approvals ahead of the targeted CY2026 market launch. This phase typically involves design finalisation, cost estimation refinement, and obtaining development permits from local authorities.
When Will the Finbar South Perth Development Site Launch to Market?
Finbar is targeting a CY2026 market launch for the South Perth site, with anticipated completion in mid-CY2029. This represents approximately a three-year development timeline from the initial launch to project completion, which aligns with standard apartment project delivery timeframes.
The market launch in CY2026 will mark the commencement of sales and marketing activities, targeting off-the-plan purchasers. Construction is expected to follow, leading to the mid-CY2029 completion date when apartment settlements and the bulk of revenue recognition will occur. This investor update provides clear visibility into the project’s timeline and its future contribution to Finbar’s earnings.
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