FKP completes construction of delayed Aerial apartment project in Camberwell

Property developer FKP has announced practical completion of its striking elliptical glass apartment project Aerial, which has risen up above Camberwell Junction in Melbourne's inner east.

The project was delayed earlier this year due a combination of weather and union issues, with completion and settlements pushed back from the first quarter of the 2012-13 financial year to the second quarter.

Aerial has been developed on the former Henley Honda dealership site at the intersection of Burke, Camberwell and Riversdale road in Camberwell and features two towers, the tallest rising to 14 levels.

It was designed by architects Woods Marsh.

FKP has pre-sold 122 out of the 144 apartments, with settlements expected later this month to deliver proceeds of $105 million.

The developer has sold only one apartment since June, with a spokesperson telling Property Observer this was "typical" for a project that is in the "homestretch of construction, as many purchasers hold off to see the final completed product".

Goldman Sachs analyst Peter Zuk says the completion of the project is “welcome news” for FKP and will inject “much-needed cash back into the business, which in turn will facilitate the commencement of other planned development projects”.

In its annual report FKP said its group debt had reduced from $938 million to $738 million following an equity raising entitlement offer to shareholders, with Aerial settlements to reduce this debt by a further $120 million.

This would imply that the sale of the remaining 22 apartments would bring in an extra $15 million in revenue.

Aerial features a selection of one-, two-, three-bedroom apartments as well as sub-penthouses and penthouses rising above Camberwell Junction.

Around 95% of the sales have been to local buyers, with a mix of owner-occupiers and investors purchasing the apartments.