Mustera’s Refinancing and Sales Drive Cash Flow Amid Rising Costs

Project Progress and Market Position

Mustera Property Group Ltd has reported steady progress on its flagship McCabe Street development in North Fremantle, a prime location overlooking the Swan River and Indian Ocean. The company is finalising design development and marketing materials for the 42-apartment, eight-storey project, with a sales launch targeted for the third quarter of 2025. This milestone is critical as it sets the stage for Mustera to convert its development efforts into revenue-generating sales.

Meanwhile, at the Forbes Residences in Applecross, Mustera successfully settled two residential units during the quarter, generating $4.6 million in sales proceeds. This not only contributes positively to the company’s cash flow but also signals ongoing demand for its residential offerings in established suburbs.

Financial Health and Operational Costs

The quarter saw Mustera incur operating costs of approximately $976,000, covering staff salaries, administrative expenses, and finance costs. Despite these outlays, the company reported a positive net cash flow from operating activities of $3.07 million, reflecting effective management of its development pipeline and sales execution.

Mustera’s capital structure remains supported by secured loan facilities with Harvis Finance and the National Australia Bank (NAB). Notably, the company refinanced one of its existing debt facilities after the quarter ended, achieving a reduction in overall financing costs. This refinancing move is expected to improve financial flexibility and reduce interest expenses going forward.

Inventory and Sales Outlook

At the close of the quarter, Mustera still had three apartments and two commercial units available for sale at Forbes Residences. The company is actively pursuing targeted sales and marketing initiatives to clear this remaining inventory. The upcoming launch of the McCabe Street project will be a key focus, with market reception likely to influence Mustera’s near-term revenue trajectory.

Payments to related parties, including directors’ remuneration and administrative services, amounted to $144,000 for the quarter, consistent with prior periods and reflecting standard corporate governance practices.

Looking Ahead

Mustera’s ability to maintain positive operating cash flow while advancing its development projects and managing financing costs positions it well for the next phase of growth. The McCabe Street sales launch will be a critical event to watch, as it will provide clearer insight into market demand and the company’s capacity to convert its pipeline into cash flow and profits.