Tough market slows developer

Developer Finbar Group admits it is still unable to build its proposed Hedland Anchorage apartment complex because of the town’s depressed property market.

Finbar acquired the $5.95 million Hedland waterfront land, close to the proposed $152 million marina and waterfront project, last April after laying down a deposit.

The group hopes to build more than 150 apartments in the project’s first stage.

But when asked if Finbar would have to relinquish its rights over the land if it did not push ahead with the development soon, project co-ordination general manager Scott Cameron said his team still backed the project.

“Both Finbar and LandCorp want to see the site developed successfully for the benefit of the town and region, however obviously current market conditions prevent this at present,” he said.

“Our final negotiated position for the land acquisition allows Finbar to settle and develop the land when we can achieve a level of pre-sales that suitably de-risk and underpin the land purchase and project viability.”

When Finbar built similar complexes in Karratha in 2012 and 2013, the State Government provided significant backing by pre-purchasing apartments.

Since that time, however, Pilbara property prices have crashed on the back of falling iron ore prices and Mr Cameron said Finbar had not pre-sold any Hedland apartments to the Government.

A LandCorp spokesman said the Government still backed the project.