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The market for Melbourne office space continues to burgeon as new developments continue to sell like hotcakes.
Cedar Woods (ASX: CWP) announced on Thursday morning that it has sold its third office building in Williams Landing, an emerging area in Melbourne's west.
Cedar Woods sold the office space to Hellenic Property Investments Pty Ltd, a subsidiary of the Hellenic Club of Canberra, for $25.93 million.
As part of the agreement, Cedar Woods will develop the building, with handover and settlement of the completed project expected in FY2020.
The listed developer announced its intention to sell the four-level purpose-built building, which has been fully leased to the Victorian State Government for 15-years with two five-year options.
Managing director of Cedar Woods Nathan Blackburne says the company received strong interest in the building, which is situated in an emerging retail and commercial hub in Melbourne's west.
Blackburn says the sale of a third building in Williams Landing is consistent with Cedar Woods' strategy of adding value to its developments and then recycling capital into new opportunities.
"It is a strategy that is proving very successful for us as we reinvest capital into new projects," says Blackburne.
The listed company has twenty additional sites in the Williams Landing Town Centre that can accommodate commercial, residential or mixed-use developments.
Construction of the office building is underway following the appointment of the Hacer Group as the development's builder.
Shares in Cedar Woods are down 0.82 per cent to $6.06 per share.
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Business News Australia
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