Ma­rina costs re­cov­ered

Southern Telegraph - - News - He­len Shield

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.”

Pic­ture: Michael Parr

Landcorp and Cedar Woods had pro­posed a ma­rina at Man­gles Bay to build on Rock­ing­ham's tourism mar­ket.

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