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- In two separate deals, Cedar Woods (CWP) pays $63.5 million for two sites in Melbourne’s western growth corridor
- The purchases add 725 lots to Cedar Woods’ development pipeline, with the potential for a higher lot yield
- The 14.6-acre Fraser Rise site, located 25 kilometres northwest of Melbourne’s CBD, was bought for $30.5 million
- Cedar Wood’s $33 million purchase of a 39.7-hectare site in Fieldstone is subject to gaining authority to partition the property from its parent title
- Cedar Woods is up 0.6 per cent, trading at $6.68 at 1:20 pm AEST.
Cedar Woods (CWP) has purchased two properties in Melbourne’s western development corridor for a total of $63.5 million in two separate transactions.
The purchases will add 725 lots to Cedar Woods’ development pipeline, with the potential for a lot yield increase.
CWP said the sites are projected to contribute to its profitability during an eight-year period from FY23 to FY30.
The sites were purchased in off-market deals from private sellers.
A 14.6-acre Fraser Rise site, located 25 kilometres northwest of Melbourne’s CBD, was bought for $30.5 million with all planning approvals in place for a 225-lot development, with potential yield upside.
Cedar Woods said the development will benefit from a recreational park and a projected non-government school as part of the Plumpton Precinct Structure Plan.
The settlement is scheduled to be completed in October 2021, and it is projected to begin contributing to Cedar Woods’ revenues in FY 23.
Cedar Wood’s $33 million purchase of a 39.7-hectare site in Fieldstone is subject to Cedar Woods gaining authority to partition the property from its parent title, which is expected in FY23.
In the future Rockbank South Precinct Structure Plan, the Fieldstone development is projected to generate over 500 lots.
The additional purchases will be brought to market sequentially, according to Cedar Woods Managing Director Nathan Blackburne, extending the Company’s profits pipeline.
“Both sites provide exposure to Melbourne’s western growth corridor with Fraser Rise set to benefit from continued demand for housing lots and Fieldstone’s launch anticipated in FY24 or FY25,” Mr Blackburne said.
“With our strong balance sheet, the support of our financiers and finance facility headroom of $94 million at FY21 year end, Cedar Woods remains well positioned to continue our strategy of diversification, bolstering our portfolio with quality product that meets the strong appetite for new housing in Australia.”
Cedar Woods is up 0.6 per cent, trading at $6.68 at 12:10 pm AEST.
