Perth-based residential developer Cedar Woods has added a 86ha site in Eglinton and is planning 1200 new homes.
The developer secured the greenfield site at 801 Marmion Avenue, 45km north of Perth’s CBD in the city’s burgeoning north-west growth corridor, for $49.5 million.
It was purchased from a private vendor, Eglinton Estates, and has subdivision approval for the first 275 lots.
It is 1.9km from the beachfront and 500m from the new Eglinton train station and Perth-Yanchep rail extension which is forecast to open in 2023.
The developer is planning to deliver a number of new residential neighbourhoods across the sprawling site, as well as a new primary school, a commercial hub and open space.
Cedar Woods managing director Nathan Blackburne said the acquisition was a strategic one as the north-west growth corridor which has traditionally accounted for approximately 25 per cent of total metropolitan Perth land sales.
“The development at Eglinton will benefit from continued demand for new housing, the state government’s delivery of METRONET and the proposed Mitchell freeway extension to Romeo Road,” Blackburne said.
“The acquisition will be funded through the company’s existing corporate finance facility, which is in the process of being extended to accommodate the acquisition and maintain excess capacity, with financiers’ consent to the acquisition already received.”
The new masterplanned development takes the company’s total portfolio to approximately 10,700 lots.
Cedar Woods has been enjoying favourable conditions in the strengthening, stimulus-driven, detached housing sector.
In the three months to October, new home sales increased dramatically in Western Australia, by 45.8 per cent compared to pre-Covid levels in 2019.
The company mainly deals in land subdivision, apartment and townhouse development in Western Australia, Victoria, South Australia and Queensland.
Western Australia accounts for the bulk of its work—over half of the lots in its portfolio.
In August, the developer booked a net profit of $32.8 million for the 2021 financial year—a 61 per cent jump on last year’s result and above the $32-million guidance it earmarked earlier in the year.
As part of its results announcement the developer confirmed it was boosting its land supply in Melbourne’s western growth corridor, acquiring 54 hectares for $63.5 million.
The two separate transactions were for a 14.6ha site at Fraser Rise and a 39.7ha site at Fieldstone.
Its total assets are currently valued at $651.8 million book value—1.2 per cent higher compared with a year ago.