Cedar Woods homes uncertain amid builder collapse

West Perth developer Cedar Woods Properties told the ASX that it was waiting for more information amid the collapse of a South Australian builder.

South Australian builder Qattro Built was constructing 46 two-storey townhouses for Cedar Woods Fletcher’s Slip development at Port Adelaide.

Qattro Built was placed into liquidation yesterday after a general meeting of the company members where they resolved it be wound up.

Despite calling the liquidation immaterial to the company, Cedar Woods advised the market today that it was obtaining more information on the builder indemnity insurance.

“The townhouses are covered by builder indemnity insurance, which is expected to cover any additional costs to complete the homes up to $150,000 per townhouse, if required," the company said.

“Whilst not considered material for the company, Cedar Woods is awaiting further information from the liquidator and will provide further updates in due course.”

In its ASX statement authorised by managing director Nathan Blackburne, Cedar Woods said 11 of the townhouses were already close to completion and have been sold as house and land packages.

The company said buyers have also settled on a contract with Cedar Woods to buy land for the 35 townhouses, but buyers have entered into a separate contract with Qattro for the construction.

“The land subdivision work has been completed by Cedar Woods and Qattro has commenced construction on these homes for the buyers,” its statement said.