01/03/2006 - 11:48

Cedar Woods pays $24m for residential development

01/03/2006 - 11:48

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Cedar Woods Properties has expanded its residential property portfolio into Melbourne's northern growth corridor paying $24 million for the acquisition of 57 hectares of land in suburban Lalor.

Cedar Woods pays $24m for residential development


Cedar Woods Properties has expanded its residential property portfolio into Melbourne's northern growth corridor paying $24 million for the acquisition of 57 hectares of land in suburban Lalor.
It plans to develop the land, currently an infill site, into a 600 lot residential estate.
The site is located 17 kilometers from the CBD, adjacent to existing residential areas, and close to a local employment precinct.
The acquisition will be the first significant residential development offered in the area in many years.
Cedar Woods Victorian state manager Nathan Blackburne said the company was excited about introducing a Cedar Woods master-planned development to Melbourne's fast growing northern corridor.
" We think the market will respond well to a development of the standard and quality that Cedar Woods is known for nationally," he said.

 

THE FULL MEDIA RELEASE APPEARS BELOW.

Media Release
1st March 2006
Cedar Woods acquires Lalor site for residential development
Cedar Woods Properties Limited has expanded its residential property
portfolio into Melbourne's northern growth corridor with the acquisition of 57
hectares of land in Lalor, some 17km from the CBD.
Cedar Woods will pay $24m for the site in an off-market transaction and plans
to develop the site into a 600 lot residential estate.
The infill site is situated at the western end of Kingsway Drive adjacent to
existing residential areas and is close to the Cooper Street employment area
which will accommodate the Melbourne wholesale fruit and vegetable markets
when relocated from Footscray Road.
The acquisition will allow Cedar Woods to take advantage of the close
proximity to the Epping Plaza Shopping Centre, the Northern Hospital, public
transport and recently established Whittlesea Public Gardens. There are also
4 schools within two kilometres of the site.
This is the first significant residential development that will be offered to the
area in many years.
"We are excited about introducing a Cedar Woods masterplanned
development to this area of Melbourne and cherish the opportunity to do so on
an infill site in Melbourne's fast growing northern corridor" said the company's
Victorian State Manager, Nathan Blackburne.
"We are proposing a variety of lot sizes to cater for the diversity of buyers
expected for this development. This mix will be both sympathetic to the
character of the existing neighbourhood and will provide buyers with a
choice."
"We think the market will respond well to a development of the standard and
quality that Cedar Woods is known for nationally," he said.
Mr Blackburne also stated that with buyers tending to relocate within growth
corridors it presents a perfect location for new housing.
"This site is one of the first estates you come across when travelling north
from the CBD. It presents a great opportunity for residents to buy land and
build a house in a location close to family, rather than heading further north
onto the fringe of Melbourne," he said.
Cedar Woods has been working closely with the Whittlesea Council to ensure
the best planning outcome is achieved for the site and to suitably reflect the
character of the surrounding area.
Anticipated to commence in 2007 with potential to generate income for 5
years, the Lalor land fits well within Cedar Woods' property portfolio, and the
acquisition is consistent with the Company's stated objective of acquiring
prospects that provide the potential to supplement earnings growth in the
medium to longer term.
Settlement of the site is scheduled for later this year which was timed to work
in with significant settlement inflows anticipated from other projects within
Cedar Woods' portfolio, including the $35m Nautilus Apartment project in
Western Australia.
This acquisition follows on from January's announcement of the $10.5m
purchase of the former South Pacific Tyres site in Footscray.
Cedar Woods also recently announced capital management initiatives
including the reintroduction of the dividend reinvestment plan and a share
purchase plan (underwritten to $3m) which will raise approximately $5m.
These initiatives were undertaken to assist in the financing of these two
acquisitions.
Cedar Woods Properties Limited originally entered the residential market in
Victoria with the acquisition of the former Laverton Airfield purchased from the
Commonwealth. The Laverton project is a 275ha infill site that will
accommodate an activity centre and residential development. The
development is proposed to be integrated with a planned regional transport
node comprising a railway station, bus terminal and freeway interchange.
Known mainly for their premium housing developments, Cedar Woods has
won several Urban Development Institute of Australia (UDIA) Awards
including the 2005 National Award for the best large scale residential estate
for Mariners Cove in Mandurah, Western Australia.
Further information: State Manager (Victoria), Nathan Blackburne, Cedar
Woods, 0418 122 155.

 

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