This article is from the Australian Property Journal archive
WESTERN Australia-based developer Cedar Woods has sold a third office building at its Williams Landing project in Melbourne’s west, having already offloaded the future headquarters of Target and the 111 Overton Strata offices.
In the latest deal, a four-level building under construction for the Victorian state government was picked up by the Hellenic Club of Canberra subsidiary, Hellenic Property Investments Pty Ltd, for $25.93 million, at a 5.4% yield.
It is fully leased on a 15-year deal with two five-year options. Cedar Woods will develop the building, with handover and settlement expected in the 2020 financial year. Construction has begun after Hacer Group’s appointment as builder.
Cedar Woods managing director, Nathan Blackburne said the strong interest received in the building reflected Williams Landing’s emergence as a commercial and retail hub in Melbourne’s west.
Cedar Woods sold Target’s future national headquarters at 2 Kendall Street for $58.23 million in June last year to Centuria Metropolitan REIT. The Wesfarmers-owned discount department store had just signed a decade-long lease over the 10-storey building’s eight levels of office space, totalling 12,919 sqm.
Its 111 Overton Road strata offices are also pre-sold and under construction.
Blackburne said the sale of a third building in Williams Landing is consistent with Cedar Woods’ strategy of adding value to its developments and then recycling capital into new opportunities.
Cedar Woods has twenty additional sites in the Williams Landing Town Centre that can accommodate commercial, residential or mixed-use developments.
The group is anticipating a 2018 full-year net profit after tax of around $40 million following a strong period of settlements of May and June, while high pre-sales numbers have been cause for further optimism.
It will enter the 2019 financial year with presales of more than $320 million, the majority of which are expected to settle in FY19, compared to $260 million in presales at this time last year.
Australian Property Journal
