Cedar Woods has purchased two low density housing estate sites in Melbourne’s west.
In the biggest deal, the group is paying $33 million for a 39.7 hectare block at Fieldstone – a four year old suburb covering part of what was once Mount Cottrell.
Settlement is deferred while the buyer obtains a c500-lot subdivision approval, expected to take place in FY23.
Marketing of the first release should start three to four years from now.
At Fraser Rise, another new suburb covering part of the area once known as Plumpton, Cedar Woods is paying $30.5m for a 14.6ha parcel ready to be replaced immediately.
This property is closer to established neighbourhoods including Caroline Springs, Hillside, Sydenham and Taylors Hill.
It is also near a proposed park and non-government school.
A planning permit allows for a 225-lot subdivision however the buyer has flagged it could fit more.
Settlement is scheduled in October (story continues below).
In 2019, Goldfields outlaid $20m for a 12ha block in the suburb capable (but at the time not permitted) to yield c177 lots.
Eight years of earnings
The Fieldstone and Fraser Rise parcels, purchased from private vendors following off-market campaigns, are expected to contribute to Cedar Woods’ earnings between 2023-2031.
“Both sites provide exposure to Melbourne’s western growth corridor with Fraser Rise set to benefit from continued demand for housing lots,” managing director Nathan Blackburne said.
“With our strong balance sheet, the support of our financiers and finance facility headroom of $94m in 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,” he added.
The acquisitions come seven months since the developer outlaid $30m for a 21.7 hectare farm abutting its Mason Quarter housing estate, at Wollert, in Melbourne’s north.
The group is also responsible for a mixed-use project at Williams Landing which includes the office Target relocated to from Geelong.
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