Finbar Group Limited (ASX: FRI), a real estate company engaged in the property investment and development, announced the launch of a new business entity that will be proving the existing and the future owners of the Finbar apartments with a one-stop-shop property management service.
Finbar to Rent will act as a wholly owned subsidiary of the ASX listed property developer that will enable the company to manage its properties in-house as well as reward its loyal customers with a cost-effective service by saving their time and money.
Darren Pateman, who is the Managing Director of Finbar, highlighted the company’s focus on the investors, who have invested in the properties of Finbar, to get the maximum return and benefit from the fixed fee management service with no additional costs.
He also highlighted that the new business was launched at that point of time when the investors steadily started returning to the Perth market, with an aim to make the process of buying and leasing the Finbar apartments that will be stress-free as well as cost-effective. This step by the company was to ensure that the customers of Finbar Group have the best experience which buying the Finbar apartments and also rewarding them with ongoing loyalty.
In the announcement, the company also notified that the investors are returning to the market cautiously which is an opportunity for the company where it can capitalize on the growth opportunity. It further expects this new business Finbar to Rent to generate a neutral revenue to the core business while allowing the company to keep property management costs low along with significant annual cost savings to investors. Thus, increasing the rate of return of the company.
This new business will be led by Joanne Davies, an experienced industrialist who will be responsible for managing only Finbar-developed properties as well as offer a set management fee of 9.8% (including GST) with no additional charges.
The package offered by the company to the investors is expected to save around $2,800 per year of the investors on a typical two-bedroom inner city apartment as compared to other standard agency fees. It includes letting fees, advertising, a depreciation schedule, and landlord insurance with no lock-in contract.
Mr Pateman considered the launch of the new business as the most significant addition to its existing business model in its 24 years of history. The new business will ensure that all the systems are in place and the company is well prepared for the growing international trend of the ‘Build to Rent’ developments.
On 13 March 2019, Finbar Group Limited published its company presentation and project update on ASX.
In the previous six months, the stock has generated a negative return of 9.55%. However, its YTD performance has been positive, and the stock has generated a return of 7.33% as on 25 March’19.
The shares of FRI traded last on 25 March, where the closing price of the stock was A$0.805. The company has a market capitalization of A$219.47 million with approximately 272.64 million outstanding shares and PE ratio 12.07x.