- Peet (PPC) announces the purchase of roughly 15 hectares of land in Belconnen, Australian Capital Territory, from the University of Canberra for around $67 million
- The acquisition of the property is contingent on the ACT government obtaining a crown lease, with the purchase amount likely to be paid in seven payments beginning in 2022
- Peet agrees to an option agreement with UC to acquire an additional 6.2 hectares of property
- The property has the potential to deliver more than 1600 residences through a mix of townhouses and apartments
- Shares in Peet are down 3.64 per cent to $1.06 at 12:19 pm AEDT
Peet (PPC) today announced the purchase of roughly 15 hectares of land in Belconnen, Australian Capital Territory, from the University of Canberra (UoC) for around $67 million.
The acquisition of the property is contingent on the ACT government obtaining a crown lease, with the purchase amount likely to be paid in seven payments beginning in 2022.
Peet has also signed an option agreement with UoC to acquire an additional 6.2 hectares of property, with the option exercisable between January 1, 2027, and December 21, 2030.
Brendan Gore, Managing Director and Chief Executive Officer of Peet, stated that the deal with UoC represents a restructuring of the parties’ April 2016 conditional agreement for the collaborative development of that area.
“This restructured deal has been negotiated on capital efficient terms and allows Peet 100 per cent control of an exciting and innovative project that will be integrated with the broader UoC campus masterplan,” he said.
“The Property has the potential to deliver more than 1600 residences through a mix of townhouses and apartments and more than 1000 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.”
Peet stated that it looks forward to collaborating with UoC on the start of this development and to be a part of the UoC’s larger masterplan concept for the campus.
“The development of the property is expected to commence during the 2023 financial year and has an estimated gross sales value of more than $1 billion, with a decision to extend the project via the exercise of the option agreement for the option land not required until 2027,” Mr Gore said.
Shares in Peet are down 3.64 per cent to $1.06 at 12:19 pm AEDT.