ASX-listed Cedar Woods’ re-announcement this week that retailer Target has pre-committed to a long-term lease at its new Williams Landing office – it made a similar statement five months ago – was the precursor to a bigger story: Cedar Woods is selling the Target building.
The 1.1-hectare plot of dirt, with valuable paperwork leasing the Wesfarmers-owned retailer to the Williams Landing address until 2029, is being marketed by CBRE without a price guide or an indication of what rent Target is paying.
Last April Target announced it would shut its Geelong North office headquarters and relocate to Melbourne’s western suburbs.
The discount retailer, which has in recent years struggled against competition from another Wesfarmers-controlled business, Kmart, has progressively been shedding jobs from the North Geelong office in recent years.
In 2012, Target leased half of a St Kilda Road office only to vacate it less than three years later (staff were dispersed back to North Geelong, and another office above the city’s Bourke Street, CBD, store, which was to become a hot-desking hub).
On December 28, Cedar Woods announced it secured the retailer for the proposed office beside the Williams Landing train station, which would also contain a child care centre, medical and fitness centre and retail.
On May 9, it reconfirmed the Target agreement in a similar ASX statement, which attached a value to the proposed office for the first time ($37 million).
A Cedar Woods spokeswoman told Capital Gain that when it made the announcement last year, the lease to Target was still conditional.
Upon completion at the end of 2018, the eight storey, 12,807-square-metre building with nearly 400 car parks, will accommodate 850 Target staff.
Agents Kiran Pillai, Neva Courts, Luke Everington and Mark Wizel are representing Cedar Woods, which was established 30 years ago.
Williams Landing, which was formalised as its own suburb a few years ago, is a flagship project for the company.
Set to take shape over the next 10 years on 275 hectares of land that was previously part of the RAAF Laverton base, Williams Landing will contain about 60,000 square metres of retail in a new town centre and thousands of residential dwellings.
“The Victorian government has designated the development as a Priority Development Zone, signifying the increasing economic activity taking place in Melbourne’s western growth corridor with the positive advancement of the Williams Landing commercial centre,” Cedar Woods said, when it confirmed the Target pre-commitment.
Cedar Woods first apartment complex, the 57-unit Newton Apartments project, was recently launched in the suburb, about 19 kilometres west of the CBD, between Laverton and Hoppers Crossing.
In 2013, in the western suburb of St Albans, about 16 kilometres from the CBD, Cedar Woods purchased the 6.8-hectare former Krueger Transport factory, in McKechnie Street, following a residential rezoning by the City of Brimbank council.
This site is now being replaced with a residential village, St A, containing 235 townhouses and 40 apartments.
Cedar Woods is also responsible for the high-profile and award winning Banbury Village development, which replaced the enormous Olympic Tyres site, abutting the Western Oval.
This story Administrator ready to work first appeared on Nanjing Night Net.