Developer Peet has purchased about 15 hectares of land in Belconnen in the ACT from the University of Canberra for circa $67 million.
Peet said the site had the potential to deliver more than 1,600 residences through a mix of townhouses and apartments.
The developer also has an option to acquire a further 6.2 hectares of land from UC from 2027, with the potential to build more than 1,000 additional townhouses and apartments.
“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,” said Peet Managing Director and Chief Executive Officer Brendan Gore.
The CEO said the agreement was a restructure of the conditional agreement between the parties for the joint development of that land, which was announced in April 2016.
“This restructured deal has been negotiated on capital efficient terms and allows Peet 100% control of an exciting and innovative project that will be integrated with the broader UC campus masterplan,” he said.
“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.”
The deal is subject to the ACT government granting a crown lease, with the purchase price expected to be paid in instalments over seven years commencing in 2022.
Listed on the ASX, Peet is a national property group that has been developing residential communities, medium density housing and apartments in Australia for more than 120 years.