Finbar says it will develop an $18.5 million luxury apartment building on Mill Point Road in South Perth.
The building at 52 Mill Point Road will consist of eight apartments and an amenities level.
The company said it would not provide capital in the development but would earn a fee equivalent to one half of the overall project profit for its services.
Construction is expected to begin before the end of the financial year with completion anticipated during the 2015 financial year.
Finbar shares were up two cents, or 1.65 per cent, to $1.23 at 9.50am.