Peet in $37m Qld development

Peet will develop a 1,100-lot residential estate in Queensland after forming a joint venture with a Thai real estate developer.

Perth-based Peet and Supalai Public Company will equally co-fund a $37.45 million acquisition of a residential estate in Redbank Plains in Queensland, which is currently under development, and combine it with an adjacent property Peet currently has under option, to create a 1,100-lot residential community.

Peet has been appointed as development manager of the project, which is expected to take six years to complete.

Managing director Brendan Gore said the acquisition added to Peet’s Queensland pipeline.

“(The acquisition) will further increase the proportion of the company’s earnings generated from its funds management business and east coast operations,” he said.

“The medium-term outlook for the Queensland residential market remains positive and as the estate is already developing and selling, it is expected to contribute to FY17 earnings.”

The project is expected to be completed in late 2022.

Peet shares were 1.3 per cent lower to 93.7 cents each at 11am.