Mustera Advances McCabe Project Amid Steady Forbes Sales and Executive Pay Rise
Mustera Property Group progresses design and marketing for its McCabe Street development while maintaining sales momentum at Forbes Residences, alongside a notable executive remuneration update.
- Design development and marketing prep underway for McCabe Street project targeting Q2 2025 launch
- Continued sales activity at Forbes Residences with commercial units sold and apartments marketed
- Operating costs of approximately $874K incurred during the December quarter
- Executive Director’s remuneration increased, including a one-time bonus
- Cash position remains stable with $2.1 million in cash and positive operating cash flow
Project Progress: McCabe Street and Forbes Residences
Mustera Property Group has provided a comprehensive update on its operational activities for the December 2024 quarter, highlighting steady progress on its key development projects. The company is advancing the design and marketing preparations for its McCabe Street project in North Fremantle, an eight-storey residential development comprising 42 apartments. Positioned with views over the Swan River and Indian Ocean, the project is tailored to the downsizer market, balancing quality with cost feasibility. The sales launch is targeted for the second quarter of 2025, signaling a critical phase for Mustera’s growth ambitions.
Meanwhile, Mustera continues to market the remaining apartments and commercial units at Forbes Residences in Applecross. The quarter saw the sale of one commercial unit and a contract signed for another, expected to settle in the first quarter of 2025. With five apartments and two commercial units still available, the company is maintaining active engagement with potential buyers, underscoring ongoing demand in this segment.
Financial Overview: Operating Costs and Cash Flow
From a financial perspective, Mustera reported operating expenses of approximately $874,000 during the quarter, which included staff costs of $307,000 and administrative and corporate expenses of $279,000. The company also recorded interest income of around $109,000 against finance costs of $65,000, reflecting its ongoing capital management efforts. Notably, Mustera generated positive net cash from operating activities of $693,000, contributing to a stable cash balance of $2.1 million at quarter-end.
On the financing front, the company manages secured loan facilities totaling $25.8 million, with key agreements including a $15 million facility from Harvis Finance and a $10.78 million commercial facility with NAB. The company repaid $2 million of the Harvis loan during the quarter, aligning with milestone commitments and demonstrating prudent debt management.
Executive Remuneration Update
In a notable governance update, Mustera announced an increase in the Executive Director Nicholas Zborowski’s remuneration. His annual salary was revised upward from $235,000 to $275,000, alongside a one-time bonus of $160,000, effective from July 2023. This adjustment reflects alignment with current compensation practices and the company’s strategic priorities, while other employment terms remain unchanged.
Payments to related parties, including directors’ remuneration and accounting services, totaled $361,000 for the quarter, consistent with prior disclosures and compliant with ASX Listing Rules.
Looking Ahead
As Mustera prepares for the McCabe Street project sales launch in Q2 2025, market participants will be watching closely to gauge buyer response and sales velocity. The company’s ability to convert remaining inventory at Forbes Residences will also be a key indicator of market conditions and operational execution. Financial discipline appears intact, but the elevated executive remuneration and ongoing development costs warrant monitoring as the company scales its portfolio.
Bottom Line?
Mustera’s upcoming McCabe launch and sustained sales efforts will be pivotal in defining its next growth phase.
Questions in the middle?
- How will the market respond to the McCabe Street project launch in Q2 2025?
- What strategies will Mustera employ to accelerate sales of remaining Forbes Residences units?
- Will the increased executive remuneration impact investor sentiment or operational priorities?
