Marina costs recovered
Cedar Woods has recovered costs — thought to be roughly $6 million — from the WA Government after it upended a joint venture multimillion-dollar Mangles Bay marina project in Rockingham.
Cedar Woods managing director Nathan Blackburne declined to specify the size of the financial settlement but said the land and housing developer had reached an agreement with LandCorp and the State Government for “full recovery of direct costs”.
Previously Cedar Woods told the Australian Securities Exchange its carrying interest in Mangles Bay was $6.3 million. Cedar Woods with its joint venture partner LandCorp worked on the project for more than eight years before Planning Minister Rita Saffioti responded to environmental concerns and community opposition by terminating the deal.
Mr Blackburne, speaking after Cedar Woods released a glowing first-quarter sales update, said Cedar Woods was “content with the outcome”.
The land and built form developer said it expected a “strong uplift in profit” for
2018-19, with earnings weighted to the second half.
Pre-sales were at a record
$376 million (including lots settled in the September quarter), up from sales of $310 million at the same time a year earlier.
This figure did not include the $58 million sale of the Target headquarters at Williams Landing or some of its other commercial projects, Mr Blackburne said.
He said Cedar Woods diversification strategy, across States, apartment, townhouse, land and commercial development had been 10 years in the making but had culminated in record amounts of construction for the company across four States, “which is now starting to flow through to earnings”.
The anticipated full year earnings surge was underpinned by projects in WA, SA, Queensland and Victoria.
Mr Blackburne said Cedar Woods had a pipeline of dwellings and commercial units, about a third “built form” which it didn’t do in WA in “any meaningful way”.
It had started townhouse projects in Bushmead and Harrisdale Green but was now planning to acquire new projects, as it had on the east coast.
“We are actively bidding on built-form projects in Perth,” he said.
“We are attracted to development sites in the inner and middle suburbs that are well serviced by transport infrastructure and other amenity.
“Part of our diversification strategy has been to embark upon a diversification of what we do in Perth . . . undertaking townhouse and apartment projects.”
Landcorp and Cedar Woods had proposed a marina at Mangles Bay to build on Rockingham's tourism market.