This article is from the Australian Property Journal archive
DEVELOPER Peet has snapped up a major Belconnen development site from the University of Canberra for $67 million, which has the potential to deliver over 1,600 housing lots worth over $1 billion.
The approximately 15 hectares of land is subject to the ACT government granting a crown lease.,
The purchase price will be paid in instalments over seven years commencing in 2022.
Peet has also entered into an option agreement for the acquisition of a further 6.2 hectares of land from UC, exercisable between 1 January 2027 and 21 December 2030.
The agreement with UC is a restructure of the conditional agreement between the parties for the joint development of that land, announced in April 2016.
CEO Brendan Gore said this restructured deal has been negotiated on capital efficient terms and allows Peet 100% control of an exciting and innovative project that will be integrated with the broader UC campus masterplan.
“The property has the potential to deliver more than 1,600 residences through a mix of townhouses and apartments and more than 1,000 townhouses and apartments across the option land.
“The property is expected to be delivered over the next 15 years, while the option land is expected to be delivered over a five-year period if acquired, providing Peet with a long-term presence in the Belconnen Town Centre growth corridor of Canberra,” he added.
“Peet looks forward to continuing to partner with UC on commencing this development and being part of the UC’s broader masterplan vision for the campus.” said Gore.
The development is expected to start during the 2023 financial year and has an estimated gross sales value of more than $1 billion.
