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Perth-based developer Cedar Woods Properties Limited (ASX: CWP) has teamed up with Queensland Investment Corporation (QIC) for a major development project that will deliver 400 apartments and townhouses to Robina on the Gold Coast.
The partnership with the Queensland Government’s investment arm comes on the heels of Cedar Woods joining forces with Tokyo Gas Real Estate Australia earlier this year to develop Banksia Apartments, the fourth stage of the company’s 1,000-lot Glenside project in Adelaide.
Cedar Woods has announced a 50-50 partnership with QIC Real Estate to develop a vacant site owned by QIC adjacent to Robina Town Centre. The site, on the corner of Collyer Quays and Robina Town Centre Drive, is positioned opposite the northern entrance to the town centre and abuts the Eastlake residential precinct.
With the partnership only freshly minted, Cedar Woods says the design phase for the project is currently under way and that it will act as development manager for the project and oversee sales. The partners have not indicated when the development is expected to hit the market.
QIC, which owns Robina Town Centre - the second-largest retail centre on the Gold Coast -has significant landholdings in Robina’s central business precinct.
QIC Real Estate managing director Michael O’Brien says the partnership with Cedar Woods will allow the investment group to ‘unlock significant value’ on the site by bringing on board a development partner ‘that has a strong track record in medium density residential development’.
“As part of QIC’s long-term strategy to transform our assets into true mixed-use town centres, we are partnering with Cedar Woods to develop a build-to-sell residential site,” O’Brien says.
“This initiative is designed not only to generate a return for our investors, but will also support Robina Town Centre by adding people to the primary catchment and improving the longer-term performance of the asset.”
For Cedar Woods, the partnership opens new opportunities for the company to work with QIC on future projects.
“Should this initial project go well and the relationship with QIC prove mutually beneficial, the potential for Cedar Woods is significant in terms of an additional future pipeline of development sites,” Cedar Woods’ managing director Nathan Blackburne says.
The partnership with QIC has been described by Blackburne as a ‘strategic shift’ for the company that has seen it engage in more joint-venture projects which provides access to third-party capital that it says paves the way for the company to take on larger-scale developments.
“In recent times we have seen significant interest from both local and foreign capital providers in investing in Australian real estate through strategic partnerships,” Blackburne says.
“Australia’s growth potential, relative political and economic stability, and the ESG credentials of local companies are key motivators.”
Cedar Woods, which posted a net profit of $37.4 million in FY22 and expects to at least match that result in FY23 despite a weaker first half, has 34 development projects under way across Australia and a pipeline of more than 10,300 lots on its books.
The company, which was founded in 1987 and listed on the ASX in 1994, operates in Western Australia, South Australia, Queensland and Victoria, developing residential subdivisions, apartments, townhouses and commercial projects.
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