Peet contractor in administration

Perth based property and land developer Peet Ltd has announced that its civil contractor for its Innisfail Estate development has placed itself into voluntary administration.

Forecast earnings for the 2008 financial year may be impacted, with the independent contractor responsible for constructing roads and other infrastructure for the development.

Full announcement below:

Peet today announced that the independent civil contractor constructing roads and other infrastructure on its Innisfail Estate at Point Cook, in Victoria, has placed itself into voluntary administration.
The company has begun discussions with the Administrator with a view to achieving the completion of the remaining works on stages 15 and 16 comprising of 134 lots. All lots in both stages are under contract and although not all of these lots were expected to settle in FY08, any delays in construction may affect the timing of these settlements and may impact on the Company's ability to achieve its earnings target for FY08.
If there is a delay in the completion of construction of lots scheduled to settle in June 2008, it will result in these lots settling in the first quarter of FY09. The delay is not expected to have an impact on the profitability of those lots.
Peet has been developing and selling land at Point Cook, 21kms from the Melbourne CBD, for nearly a decade and has a substantial ongoing land bank in the area. Whilst stages 15 and 16 comprise a very small proportion of the Company's activities at Point Cook, the timing of this event so close to end of financial year is unhelpful.
The contractor is not working on any other stages at Innisfail or any other Peet estate.
These circumstances have occurred at a critical time in the financial year and we will continue to keep the market updated.