Cedar Woods Properties Limited has snapped up a 43 hectare farm in Melbourne’s northern suburb of Wollert for $56.65 million.
It is the fifth major residential development site acquisition in just over a year for the ASX-listed Perth-based builder.
Located within a zone affected by the Wollert Precinct Structure Plan, the parcel has the potential to accommodate a master planned community in about 500 dwellings.
The land was purchased from P. & A.M. Micelotta with deferred payment terms until November, 2022.
However, Cedar Woods said, it expects the project to contribute to earnings within three years.
The developer added that the new site is walking distance of proposed amenity including a town centre, train station and school.
The parcel is about six kilometres north of another Wollert housing estate Cedar Woods is building, Carlingford.
Counter cyclical buy on favourable terms
Cedar Woods managing director Nathan Blackburne said the acquisition “demonstrated the company’s disciplined approach to utilising its strong balance sheet to build its project portfolio at optimal times in the property cycle.”
“Consistent with our strategy of counter-cyclical purchasing, we’ve acquired this quality land development opportunity under favourable settlement terms, in a location characterised by high population growth and relative proximity to the city compared to other growth areas.
Wollert is about 26 kilometres from the city, adjoining another burgeoning suburb, Craigieburn.
“This acquisition takes our national portfolio to more than 10,000 dwellings and lots, and boosts our Victorian holdings which we expect to benefit from strong forecast population growth and housing demand,” Mr Blackburne said.
“This acquisition is the fifth for Cedar Woods in just over 12 months, in line with its strategy to grow its national portfolio, diversified by geography, product type and price point”.