Finbar Locks In $13.68 Million from Rivervale Site Sale, Boosting H1 FY2026 Earnings
Finbar Group has confirmed the unconditional sale of its Rivervale development site for $13.68 million, with settlement expected by mid-October, boosting its H1 FY2026 earnings.
- Sale of 6 Homelea Court, Rivervale site now unconditional
- Transaction valued at $13.68 million plus GST
- Settlement expected mid-October 2025
- Buyer is community housing provider Together Housing (WA) 2 Ltd
- Proceeds to strengthen Finbar’s balance sheet and fund future developments
Unconditional Sale Secures Capital Injection
Finbar Group Limited, a prominent player in Western Australia’s apartment development sector, has announced that the previously contracted sale of its vacant Rivervale site at 6 Homelea Court is now unconditional. The transaction, valued at $13.68 million plus GST, is set to settle by mid-October, marking a significant milestone for the company’s financial year 2026 first half.
Strategic Divestment in a Favourable Market
The 3,908 square metre site, which already holds development approval, was sold to Together Housing (WA) 2 Ltd, a registered charity and community housing provider. This divestment aligns with Finbar’s strategy to recycle capital efficiently, enabling the company to strengthen its balance sheet and reinvest in its forward development pipeline amid a positive market environment.
Implications for Earnings and Growth
Finbar’s CEO Ronald Chan highlighted the earnings boost expected from this sale in the first half of FY2026. The capital influx not only improves liquidity but also positions the company to pursue new development opportunities with greater financial flexibility. This move reflects a broader trend among developers to optimize asset portfolios and focus on projects with higher returns or strategic value.
Community Impact and Market Positioning
By selling to a community housing provider, Finbar contributes indirectly to social housing initiatives in Perth, potentially enhancing its corporate reputation. The transaction underscores the company’s ability to execute deals that balance commercial objectives with community considerations, a factor increasingly valued by investors and stakeholders.
Looking Ahead
As settlement approaches, market watchers will be keen to see how Finbar deploys the recycled capital and whether this sale signals a shift in its asset management strategy. The company’s next financial updates will be critical in assessing the impact of this transaction on its growth trajectory and shareholder value.
Bottom Line?
Finbar’s successful sale unlocks capital that could accelerate its next wave of developments in a buoyant market.
Questions in the middle?
- How will Finbar allocate the capital recycled from this sale across its development pipeline?
- What are the expected timelines and projects for reinvestment following settlement?
- Could this transaction indicate a broader strategic shift towards selective asset divestments?
