Cedar Woods Properties Ltd (ASX:CWP) has acquired a 16.5 hectare site in Glenside, Adelaide for $25.8 million plus tax, the company said in a disclosure to the Australian Securities Exchange (ASX).
Cedar Woods Properties (ASX:CWP)’s stock was up 1.155% in early trading following the news about the acquisition. CWP was trading at 4.380 a share as of this posting.
Cedar Woods received approval from the South Australian Government for the conditional sale of the Glenside site, which is located 2 kilometres south east of Adelaide CBD and adjacent to over 700 hectares of parkland, which surrounds the city.
Cedar Woods was selected as the preferred proponent last year based on its vision for the site as announced on 16 September 2015. The project includes around 1000 medium
to high density homes, as well as maintaining around five hectares for open space.
Over the past six months, Cedar Woods and the South Australian Government’s urban renewal agency, Renewal SA, worked together to refine the master plan in consultation with the community.
The master plan envisages a mix of two and three storey detached houses and townhouses, with a two storey limit adjacent to existing properties, as well as apartments varying in height up to eight storeys.
The sale of the land is subject to a number of conditions including the outcome of a rezoning which is currently out for public consultation. The rezoning is expected to be completed later this year with settlement scheduled in early 2017.
Consistent with Cedar Woods’ strategy, the Glenside project will enhance the portfolio’s national footprint and product diversity and will anchor the company’s further expansion into the Adelaide market over the coming years.
Cedar Woods has received approval from its financiers to increase its corporate finance facility from $135 million to $175 million to provide funding for Glenside and future opportunities.
Cedar Woods Development Director Patrick Archer said the Glenside site is arguably Adelaide’s best urban renewal development opportunity.
“Set amongst magnificent heritage buildings, mature trees and located just 2km south east of the CBD, the site will become a flagship project for Cedar Woods. Due to its premium eastern suburbs location, excellent local amenities and product diversity we expect that the project will appeal to a wide demographic from within the local area as well as drawing people from other parts of Adelaide,” Archer said. – BusinessNewsAsia.com