As a result of additional landholding, the project can accommodate a master-planned community of around 800 lots plus two school sites.
The additional land was purchased for $30 million from a private landowner, with payment deferred until 2022 and the company expects this additional Wollert landholding to contribute to earnings by FY23.
Favourable property cycle
Cedar Woods’ managing director Nathan Blackburne said the acquisition demonstrated the company’s disciplined approach of utilising its strong balance sheet to take advantage of this favourable time in the property cycle.
He said: “We’re confident that the Melbourne land subdivision market will benefit from continued housing demand and perform well as Victoria continues its economic recovery.”
“We’ve seized the opportunity to acquire a neighbouring site to leverage the Mason Quarter brand and the amenity we will establish within the Wollert community.
“The combined site increases Mason Quarter’s frontage to Craigieburn Road, providing greater prominence and additional scale benefits which are value accretive to the initial Wollert acquisition.”
Mason Quarter is within Wollert’s approved development precinct and will benefit from a proposed town centre, a future train station, schools, community facilities, walking and cycling paths, and parks.