This article is from the Australian Property Journal archive
WESTERN Australian apartment developer Finbar says it is in a position to develop and deliver product in the market while its rivals struggle with supply chain issues and staff shortages.
Finbar, which has $642 million of end value apartments under construction, posted a 138% increase in half-year profit boosted by a $4.96 million increase the value of its Pelago asset in Karratha.
Contributions to the operating net profit were also made from the sell-down of the remaining completed stock at Sabina in Applecross, and Riverena in Rivervale, and completion and settlement of 66 units in the 128 unit Dianella Apartments development.
Major projects include AT238 in the Perth CBD and Civic Heart in South Perth, while construction has kicked off at Aurora.
It launched the $99 million The Point apartment project in Rivervale and nabbed 87 apartment pre-sales worth $48.4 million, and received development approval for its $207 million Garden Towers joint venture apartment project on the Chemistry Centre site on Perth CBD’s eastern edge.
“The mere fact that we can commence construction on projects with fewer pre-sales than our competitors means that we also have stock that can be progressively repriced during construction, which helps insulate our margins in an inflationary market for both the value of apartments and building costs,” managing director Darren Pateman said.
He said the half-year result was pleasing considering the challenging trading conditions with the “greatest challenge being supply chain disruptions to the building industry, including constraints in building contractor labour brought about by almost 700 days of WA’s strict COVID border policies”.
“I do however see this improving after 3 March as the State moves to relax these policies.”
The Housing Industry of Australia estimates more than 10,000 apartment that have been either proposed or approved have been deferred indefinitely in Western Australia.
The company declared an interim dividend of $0.02 per share, unchanged on the prior corresponding period.
