Finbar are the number one apartment developer in WA, until now concentrating on Perth and surrounding suburbs. The WA gov estimate the need for approx 328,000 new homes by 2031 and have mandated 47% (~154,000) to be infill, medium to high density.
This capital raising and SPP is to facilitate the fast tracking of the Karratha “Pelago” development that will have approx end value of $225,000,000. Finbar have stated this is start of a long term focus on the Pilbara.
“Karratha is an administrative centre of resources activity and a town which is experiencing an inability of new housing supply to keep up with accomodation demands”
A quick look at real estate prices in Karratha will reveal standard suburban 3 bedroom houses selling for $800,000+ and yielding $1000+ per week rent.
As with any investment there are risk’s (interest rates, housing bubble…) so please DYOR.
I may still participate in the SPP @ $1.15 but today I picked up a nice little parcel of shares @ $1.13 – Happy Days
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