This article is from the Australian Property Journal archive
DEVELOPER and syndicator Peet has joined forces with its major shareholder to establish a new wholesale fund to acquire a Sunshine Coast site, earmarked for a masterplanned community.
Peet will hold a 50% stake in the new fund alongside Western Australian property identity Garry Brown-Neaves, whose company Brown-Neaves Investments will have a 29% interest.
BNI has a history of co-investing in projects with Peet and is also a substantial shareholder in Peet, currently holding circa. 7% of the company’s issued shares.
The fund has acquired 33.1 hectares of land in Palmview on the Sunshine Coast for $56 million excluding GST.
The site adjoins Peet’s highly successful Village Green estate and has potential to be developed into 470 dwellings.
Peet CEO Brendan Gore said the acquisition is in line with the company’s strategy.
“Our strategy is to create value for shareholders by investing in high quality strategic locations across Australia – with a weighting to undersupplied east coast markets, expanding our product offering and geographic presence to appeal to a wider variety of customers and to maintain strong capital management.
“Acquiring a project in an area familiar to Peet, that adjoins an existing project that has performed strongly, and co-investing with highly reputable groups represents sound business,” he added.
Settlement is due to occur between June and 30 September this year.
Peet has been appointed as the development manager of the fund, with the project expected to be delivered over five years, with construction starting next year.
