21/12/2015 - 11:15

Cedar Woods in $24.6m east coast buy

21/12/2015 - 11:15

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Cedar Woods Properties has purchased a 3.8 hectare infill site in Queensland for $24.6 million, while also announcing the extension of a $135 million loan.

Cedar Woods in $24.6m east coast buy
Cedar Woods Queensland state manager Nathan Blackburne.

Cedar Woods Properties has purchased a 3.8 hectare infill site in Queensland for $24.6 million, while also announcing the extension of a $135 million loan.

In a deal brokered by CBRE, Cedar Woods has bought the site in Wooloowin, about 5 kilometres north of Brisbane’s CBD, with the development concept to include a mix of townhouses and apartments, along with a small office and retail component.

Settlement of the sale has been deferred and is expected to occur in July, with the project expected to contribute to Cedar Woods’s earnings from 2018.

The property has planning approval for 279 residential dwellings and buildings of up to eight levels.

Cedar Woods Queensland state manager Nathan Blackburne said the development concept would be determined after a further design process and discussions with authorities.

“We have developed a proven model for delivering quality, medium-density projects in middle and inner ring suburbs in Victoria and Western Australia, and we are confident we will produce another quality development on this site,” Mr Blackburne said.

“This acquisition complements our Ellendale project at Upper Kedron, in Brisbane. We are exploring and evaluating other strategic opportunities to build our national portfolio.”

Meanwhile, Cedar Woods has extended its three-year $135 million facility with ANZ Banking Group and Bankwest by an additional year to November 30, 2018.

In a statement, Cedar Woods said the facility is able to be extended for an additional year on each November 30, refreshing the three-year term.

“The facility contains covenants typically expected of a property finance facility, including the requirement to maintain a minimum level of interest cover and a loan to valuation ratio limit,” it said.

“The facility will continue to provide funding for Cedar Woods’ existing operations, ongoing development of its projects and future acquisitions, and provides the company with secure access to competitively priced long-term funding.”

Cedar Woods shares were 3.3 per cent higher to $3.85 each at 11:15am.

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