Finbar Group (ASX: FRI) Starts Settlements at $296.9 Million Garden Towers

Finbar Group has completed its $296.9 million Garden Towers development in East Perth and secured individual strata titles, clearing the way for settlements and revenue recognition to begin.

The apartment developer expects most settlements to occur within 14 days of titles being issued. The resulting revenue is anticipated to contribute to Finbar’s financial performance in the first half of FY27.

Garden Towers is Finbar’s largest development by lot count in its 30-year history. Of its 342 residential and commercial properties, 279 have been sold, representing approximately 82% of the project and $210 million in sales.

The remaining inventory consists of 56 apartments and seven commercial lots. This unsold stock provides scope for further sales but also leaves Finbar exposed to the timing and pricing of those transactions.

Revenue moves closer to recognition

Completion is financially important because apartment developers generally recognise project revenue around settlement rather than when an initial sale is recorded. Finbar has not provided a specific earnings or profit contribution from Garden Towers, but said the project is expected to make a significant contribution in the first half of FY27.

The development is held through a 50% joint venture between Finbar and Ventrade Australia, a wholly owned subsidiary of Chuan Hup Holdings, Finbar’s largest shareholder. The reported $296.9 million end value and $210 million of sales relate to the overall joint-venture project rather than Finbar’s ownership share alone.

Garden Towers comprises 329 apartments and 13 ground-floor commercial properties across a six-level podium and two towers of 37 and 26 storeys. It exceeds Finbar’s Civic Heart development in South Perth by number of lots.

Finbar acquired the 5,335-square-metre site from DevelopmentWA for $16 million in October 2020. Development approval followed in November 2021, the project was launched in May 2022 and construction began in April 2024.

The site sits opposite Queens Gardens and close to the Perth central business district, Swan River and the redeveloped WACA precinct. Finbar also retained the heritage-listed former Materials Science Building for reuse within the ground-floor commercial precinct.

Part of a $1.95 billion pipeline

Garden Towers forms part of Finbar’s five-year development pipeline, which the company values at A$1.95 billion. Its completion shifts one of the largest projects in that pipeline from construction into the settlement phase.

Finbar expects FY27 to be active across settlements, construction and new project launches. The company also reported 27 sales from the recent launch of Parkside Residences in Rivervale, which it cited as evidence of continued buyer interest, including demand from existing Finbar customers.