06/05/2014 - 09:12

Cedar Woods targets Queensland

06/05/2014 - 09:12

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Cedar Woods Properties is poised to expand into the Queensland market with the $68 million purchase of a residential development site near Brisbane.

Cedar Woods Properties managing director Paul Sadleir.

Cedar Woods Properties is poised to expand into the Queensland market with the $68 million purchase of a residential development site near Brisbane.

The 227-hectare Upper Kedron site, 13 kilometres west of Brisbane's CBD, will host a master-planned residential development, with plans to deliver more than 1,000 lots over 10 years.

Cedar Woods managing director Paul Sadleir said the company hoped to attract a mix of customers, with particular focus on second and third home buyers.

"Upper Kedron offers Cedar Woods the ideal opportunity to enter south-east Queensland, which is a major market and one which is forecast to grow strongly in the coming years," he said.

"We have applied a disciplined and patient approach to assessing opportunities in the Brisbane area and Upper Kedron has the key characteristics to fit into Cedar Woods' overall development pipeline and enhance our ability to deliver consistent earnings growth."

Cedar Woods has raised $25 million in a share placement to institutional investors towards the purchase, managed by Euroz Securities, Morgans and Blackswan Equities.

The placement consisted of 3.7 million new shares at $6.80 each, representing a 3.8 per cent discount to the company's 10-day volume-weighted average price.

The company has also opened a share purchase plan, capped at $5 million, at the same issue price as the placement.

The balance of the Upper Kedron purchase will be funded by existing debt facilities.

The Perth-based developer also owns a number of residential and commercial developments in Victoria.

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