- 14.6 hectare site in Fraser Rise was acquired for $30.5M
- 39.7 hectare site in Fieldstone was acquired for $33M
- Will provide earnings for the developer over this decade
Property developer Cedar Woods has today announced the acquisitions of two sites in Melbourne’s West for $63.5 million, which it says will add 725 lots to its portfolio.
The 14.6-hectare site in Fraser Rise and 39.7-hectare site in Fieldstone were acquired off-market from private vendors for $30.5 million and $33 million respectively.
Along with adding 725 lots to Cedar Wood’s development pipeline, they are expected to contribute to the company’s medium-term earnings, specifically over eight years from the financial year 2023 to 2030.
The Fraser Rise site, located 25 kilometres northwest of Melbourne’s CBD, has planning permits in place for a 225 lot subdivision. Falling under the Plumpton Precinct Structure Plan, the development will benefit from a proposed non-government school and a recreational park. The settlement is due in October.
The Fieldstone site is subject to receiving approval to subdivide the site from its parent title, which is anticipated during the 2023 financial year. If approved, the development will yield over 500 lots in the Rockbank South Precinct Structure Plan.
Nathan Blackburne, Cedar Woods Managing Director, said due to the sequential nature of the acquisitions, the sites will further extend the company’s earning 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,” said Mr Blackburne.
“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.”
Nathan Blackburne, Cedar Woods Managing Director