Cedar Woods partners with Tokyo Gas on Incontro Subiaco expansion

Cedar Woods Properties Limited is pleased to advise that it has entered into an agreement to partner with Tokyo Gas Real Estate Australia (TGREA) on the recently acquired Perth landholding at Upham Street, Subiaco. TGREA purchased 49% of the development with Cedar Woods appointed to manage and sell the project.

In May 2024, Cedar Woods announced that it had purchased a 9,784 sqm site in the inner-city suburb of Subiaco on which it plans to develop over 200 apartments across three buildings. The site is directly adjacent to the Company’s successful Incontro Subiaco project, at which 41 townhouses have been completed and an apartment project is expected to be launched soon.

Managing Director, Nathan Blackburne, said the acquisition is consistent with the Company’s strategy to grow its national portfolio with projects diversified by geography, product type and price point.

“Cedar Woods has a history of successfully acquiring or partnering on strategically located infill sites, that can generate strong returns for shareholders and excellent products for customers.”

“This acquisition supports the provision of much needed housing supply, especially for apartments, which are in high demand and experiencing record low vacancy rates and rental growth.”

In 2023 Cedar Woods announced that it had made a strategic shift to some future projects being undertaken in joint venture arrangements. Shortly thereafter the Company announced two relationships, one with QIC and the second with TGREA. The initiative seeks to scale up the business in a capital efficient manner, amplify return metrics, deliver sustainability outcomes, leverage the existing skills base, further diversify the project portfolio, access larger scale sites and generate fee income for recurring earnings.

As one of their growth strategies, TGRE has announced recently it will be active in property developments globally, primarily in Australia, with the investment of approximately A$600 million (60 billion yen) by 2030 and with a focus on developments that can also deliver sustainability outcomes.

The Subiaco deal will be the third that Cedar Woods is undertaking with TGREA and it is the intention of the parties to create a relationship of scale across the country with joint investments and in developments that can  generate strong shareholder returns through sustainable property development.

Cedar Woods has previously announced the following partnered projects:

• Robina, Queensland with QIC (in planning approvals phase)
• Banksia Apartments, Adelaide with TGREA (construction soon to complete)
• Bloom 1 Apartments, Adelaide with TGREA (construction completing in FY25)

Managing Director, Nathan Blackburne said the latest agreement with TGREA was another step in the execution of the new partnering strategy and that he was looking forward to announcing further deals over FY25.