Cedar Woods acquires two new development sites in Melbourne's west
The ASX-listed developer Cedar Woods has spent $63.5 million on two sites in Melbourne’s western growth corridor.
They've secured a 14.6 hectare site in Fraser Rise ($30.5 million) and a 39.7 hectare site in Fieldstone ($33 million). Combined, the acquisitions will add 725 lots to Cedar Woods’ development pipeline.
The Fraser Rise site (pictured main), 25 kilometers north west of Melbourne’s CBD, has planning permits in place for a 225 lot subdivision.
As part of the Plumpton Precinct Structure Plan, the development will benefit from a recreational park and a proposed non-government school. Settlement is due in October 2021 and is expected to contribute to Cedar Woods earnings from FY23.
The Company’s purchase of a 39.7 hectare site in Fieldstone (below) is on deferred terms and is subject to Cedar Woods receiving approval to subdivide the site from its parent title, which is anticipated in FY23.
The Fieldstone development is expected to yield over 500 lots in the future Rockbank South Precinct Structure Plan.
Cedar Woods’ Managing Director, Nathan Blackburne, said the new acquisitions will come to market sequentially, further extending the Company’s earnings 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,” 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."