This article is from the Australian Property Journal archive
PEET has secured two new high quality inner city sites in Adelaide after entering into development management agreements with Renewal SA.
The first property secured under the agreement is a 3.6-hectare site in Forestville, around 1.5km south of the CBD.
The site is set to be developed by a consortium into a retail, education services, short-stay accommodation and residential offering, with a diverse mix of both apartment and townhouse dwellings.
As a member of the consortium, Peet’s role and revenue share will be in the development and eventual sale of around 217 townhouse and apartment residences, with an anticipated gross value of around $90 million.
The balance of the project will be carried out by the other members of the consortium.
Peet will begin construction on the first stage of the project in FY24, with earning to follow.
The second property in a 3.7-hectare site in St Clair, around 7km northwest of the CBD, to be developed into 172 dwelling, again with a mix of townhouse and apartment offerings.
The St Clair project, is currently forecast to have a gross development value of $40 million.
“These two projects build on the longstanding partnership between Peet and Renewal SA, which has included the award-winning Lightsview community and our latest venture, Fort Largs, which is currently under development,” said Brendan Gore, CEO and managing director of Peet.
Peet will work with Junction on the St Clair development, with the SA-based social and affordable housing provider to participate in the purchase of the dwellings and facilitate ownership pathways, such as a build-to-rent offering.
“In working with Junction, at least 45 per cent of the proposed 172 dwellings will be set aside as affordable housing, three times the 15 per cent typically required,” added Gore.
Sales at the St Clair are set to commence in the second half of FY23, with earnings to be spread across FY24 and FY25.
