This article is from the Australian Property Journal archive
WESTERN Australia-based developer Peet has sold the Arena residential estate in Greenvale, 24km north of Melbourne to Satterley Property Group for $93.1 million.
The sale is unconditional with settlement to occur in instalments over three years, with the first amount of $28 million due in December, followed by $27 million in June 2016 and the balance of $38.1 million due in June 2018.
The transaction was managed by Deloitte Real Estate.
The 193ha Arena estate would comprise 1,350 lots when it is completed.
Satterley Group managing director Nigel Satterley said the acquisition will boost the company’s market share in Victoria from 3% of total residential land sales to over 10%.
With 51 lots sold to date, Satterley said he expected the development would take 7-10 years to complete.
The Arena acquisition is the group’s second major purchase in the past year. Last October, Satterley paid $53.45 million for the 127 ha Arcadia (formally Aspect) Estate in Officer from Places Victoria.
“While the residential market is in the spotlight at the moment, the fundamentals are positive, underpinned by buyer demand, strong confidence and sustainable growth in land development values,” Satterley said.
Peet CEO Brendan Gore said the sale highlighted the company’s ongoing focus on maximising its return on capital.
“Peet continues to manage and leverage its asset base in a manner that maximises the return on the capital it employs and ensures the company is well positioned to take advantage of growth opportunities as they arise.
“The proceeds from the sale of Arena will allow the Company to redeploy funds into a number of prospective opportunities currently being canvassed,” he added.
Meanwhile Peet is expects to post a full year net profit after tax of $38.5 million, which is slightly ahead of guidance of $38.0 million, and represents a 27% increase over the 2014 financial year.
Earnings per share is expected to be 8.3 cents per share (FY14: 7.0 cents per share) and the directors intend to announce a final dividend of 3.0 cps, taking the full year dividend to 4.5 cps.
Australian Property Journal
