04/01/2022 - 13:23

Peet acquires control of $6.7b Queensland project

04/01/2022 - 13:23

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WA-based developer Peet has secured full ownership of the $6.7 billion Flagstone City project in South East Queensland, acquiring a 50 per cent shareholding from its joint venture partner.

Peet acquires control of $6.7b Queensland project
Queensland's Flagstone City project. Photo: Peet.

WA-based developer Peet has secured full ownership of the $6.7 billion Flagstone City project in South East Queensland, acquiring a 50 per cent shareholding from its joint venture partner.

Peet acquired Spirit Super’s shareholding in the residential housing project for $46.15 million, with settlement to occur on January 19.

Peet will take on an additional $21 million of debt in the deal, representing Spirit Super’s share of the project’s development loan.

Flagstone City’s masterplanned development comprises 12,000 dwellings, 44,000 square metres of retail space and 58,000 square metres of office space over 126 hectares.

The entire $6.7 billion Flagstone City Project covers 1,245 hectares and was identified by the Queensland government as a priority area for housing development.

Peet managing director Brendan Gore said the deal would give Peet 100 per cent ownership of the more than 10,500 remaining lots at Flagstone, with a gross development value of $3.4 billion.  

“Flagstone is a developing asset that is currently generating profits and operating cash,” he said.

“This additional investment is therefore expected to be earning accretive from settlement.”

The purchase follows Peet’s acquisition of a 15 hectare parcel of land from the University of Canberra for $67 million.

Peet is funding the Queensland acquisition from its existing cash and debt facilities.

The company expects its debt facilities to average $93 million over the next 18 months.

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