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Logan land deal stitches together a $3.4 billion prize for developer

Business

Developer Peet Ltd has stitched up two land deals in a week, worth a total of $120 million, which will give it full control of the remaining $3.4 billion Flagstone City project near Brisbane.

 

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Peet on Thursday announced it had sold a 250ha broadacre lot at New Beith for $80 million.

That followed a $46 million buyout of Spirit Super’s 50 per cent stake in the Flagstone City project in New Year’s Eve. Peet will also assume $21 million of Spirit’s debt.

The deal with Spirit will give Peet Limited full control of the remaining 10,500 housing lots with in the $3.4 billion Flagstone City project.

It already owned the other half interest in the 126-hectare project.

When completed Flagstone City is expected to have about 12,000 dwellings.

Peet managing director Brendan Gore said the sale of the New Beith land was 83 per cent above its book value which he said provided strong evidence of the embedded value in the company’s overall landbank.

He said the broadacre lot was not on Peet’s short to medium term development program, but the company did not disclose the buyer.

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

Peet started off its Flagstone project in 2019 when the State Government approved the development of 1700 new lots in a $6.7 billion satellite city development in Logan.

The approval, which included seven different freehold land products under 300sq m, formed part of developer Peet’s Flagstone “satellite city” development.

Flagstone was earmarked by the Government to fast track the supply of affordable housing in one of South East Queensland’s growth areas.

Greater Flagstone was declared a priority development area in 2010 and covers a total area of 7188 hectares.

 

 

 

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