Two new WA estates for LWP Property

LWP Property Group has launched two new land estates in Perth’s southern suburbs, shrugging off slowing market conditions that are forcing other developers to look interstate.

LWP today said it had successfully raised a total of $34 million through syndication for the two projects, which are located in Wellard and Southern River.

The developer is planning 400 lots at Wellard, where sales are already launched, and 350 blocks for Southern River.

LWP business development general manager Stuart Duplock said the two projects had attracted strong interest from local investors.

“Our investors are private family offices and high net worths who tend to invest for superior performance through the cycle,” he said.

“They recognise that property is a long-term investment.

“They value an asset backed investment that is lowly geared and as such have not been deterred at all by commentary around the existing WA market.”

The show of confidence in Western Australia is in contrast to two of the state’s ASX-listed land developers, Peet and Cedar Woods Properties, which have been increasing their exposure east of the state.

Last month, Peet spent $37 million acquiring a residential land development in Queensland, a deal that followed a $265 million outlay on a South Australian project in May.

Cedar Woods has also been active in South Australia, having been appointed to two SA-government-led redevelopment projects in 2016.

Late last year, Cedar Woods Properties also spent $24.6 million on a 3.8-hectare infill site in Queensland.