This article is from the Australian Property Journal archive
WESTERN Australia-based developer Peet has taken full ownership of the $6.7 billion Flagstone City project south of Brisbane, while it has also offloaded 250 hectares of broadacre land in the region for about $80 million.
Peet has bought its Flagstone City co-owner Spirit Super’s 50% share for $46.15 million after Spirit Super undertook a strategic review of its development portfolio.
Peet’s managing director and CEO, Brendan Gore, said the acquisition will give Peet 100% ownership of the more than 10,500 lots with a gross development value of $3.4 billion.
The masterplan community will be home to 12,000 dwellings upon completion and features a 126-hectare CBD that will service a population of 30,000.
Peet will assume an additional $21 million of debt in addition to the payment, representing Spirit Super’s share of the project’s development loan. Settlement will occur this week and the purchase price is to be paid in four instalments over three years.
The deal arrives about a month after Peet acquired roughly 15 hectares of land from the University of Canberra for around $67 million with an estimated gross sales value of more than $1 billion.
Meanwhile, Peet has also sold 250 hectares of land in New Beith.
Settlement of the unconditional sale is expected in the first occur in the first half of FY23.
Gore said the sale highlighted the company’s ongoing focus on appropriately managing its significant landbank.
“The property was not on the company’s short to medium-term development program and has been sold at a price which is an 83% premium (net of transaction costs) to book value, providing strong market evidence of embedded value in Peet’s national landbank.”
