Its days of pioneering land sales in Western Australia on terms of a one-pound deposit and interest-free repayments of 10 shilling per month may be long gone, but property stalwart Peet Ltd has not lost any of its entrepreneurial spirit.
Its days of pioneering land sales in Western Australia on terms of a one-pound deposit and interest-free repayments of 10 shilling per month may be long gone, but property stalwart Peet Ltd has not lost any of its entrepreneurial spirit.
The company James Peet, established in 1985 as Peet & Company, has grown through the various peaks and troughs of the Australian housing market to stamp its name across much of Western Australia and is now building a name for itself in Victoria, Queensland and soon in New South Wales.
Peet has more than 67 land development projects in metropolitan and regional WA, Victoria, Queensland and New South Wales, land syndicates attracting more than 3,500 investors and a growing income property fund with more than $50 million worth of assets under management throughout Australia.
Other ventures gaining ground include the Peet Living, Peet Senior Living and Peet Commercial divisions.
Peet outgoing chief executive and soon to be non-executive director, Warwick Hemsley, believes Peet’s growth over the years puts it in a solid position for the future.
Peet’s land bank is the third largest among Australia’s listed property groups, with 33,996 lots with an estimated end value of more than $5 billion.
Mr Hemsley is keen for the company to continue to grow and take on the likes of Lend Lease and Stockland, both of which have land banks more than double that of Peet.
“Yes, we want to grow the land bank, but not at all costs,” he said.
“They have to be the right deals that are feasible that fit into our funding model.”
Peet funds its project through syndicates, joint ventures and through its balance sheet.
“I think there are opportunities for this company to continue to grow,” Mr Hemsley said.
“Australia is a big country, it has a growing population and a strong economic track record and it has got sound infrastructure and there are always opportunities out there.”
Peet’s most significant projects to date, according to Mr Hemsley, are its 1,463 lot Burns Beach Estate, off Marmion Avenue, the 3,247 lot Carramar Golf Course Estate, near Joondalup, as well as acquiring land at Point Cook in West Melbourne, Greenvale and Craigburn in North Melbourne.
On a strategic note, Mr Hemsley believes the land it recently acquired in Caboolture, Queensland was also a good buy with its potential for a 1,000 lot estate.
Mr Gore told WA Business News he would continue to apply the company’s strategy of diversification across four key markets of WA, Queensland, Victoria and its more recent discovery, New South Wales.
“We’re keen to grow in WA, Queensland and Victoria, and we’re actively looking with an open mind at New South Wales. I think New South Wales has probably bottomed but there are positive aspects there now,” he said.
In its early years, Peet formed what are now some of Perth’s oldest and most prestigious suburbs including Dalkeith, Cottesloe, Applecross and South Perth.
By the mid 1900s, it was handling a total of 83 estates including parts of Scarborough, North Perth, Inglewood, Bayswater, Malaga, High Wycombe, Victoria Park and Canning Vale.
It was during this time that James Peet was succeeded as chairman by his son Cyril Peet, and years later by Geoff Russell.
Cyril Peet and Geoff Russell were well known amongst the Perth community through their involvement with real estate associations, charities and sporting groups.
In 1985, Peet merged the business with Tony Lennon and Associates, and Mr Russell was promptly succeeded by Tony Lennon (pictured).
Warwick Hemsley joined the company in that year as a director, before becoming managing director and CEO.
In the mid 1980s and early 1990s, Peet formed the largest franchised suburban real estate group in WA, before its master franchise was sold in 1993.
From this point on, Peet moved into the specialised services of land syndication, project management and marketing of land estates.
When Tony Lennon’s son Anthony joined the board in 1996, Peet was about to make its first foray into Victoria with the purchase of St John’s Wood and Panorama estates in Berwick.
Other firsts were to follow, including the purchase of its first estate in Queensland-Warner Lakes in 2002 and Peet’s listing on the ASX in 2004.
Indeed, its biggest growth spurt was to occur over the following three years, during which it branched out in apartment projects, seniors accommodation, and commercial, retail and light industrial developments.
Mr Gore said its Seniors Living portfolio was earmarked for significant attention and investment by the company.
Buoyed by its first foray into development with Grand 56 and Sixteeen Hammersmith apartments projects in Joondalup under the Peet Living banner, Mr Gore said there was plenty of scope within its land bank to provide more affordable housing options across Australia.
“We’ve identified many opportunities for affordable housing and providing different lot sizes is important. Most are within existing land bank but we’ll do a lot more,” he said.
On the commercial front, Peet received development approval in March for the $20 million Carramar District Shopping Centre, the first project for its Commercial division.
Now that Peet has a firm foot in the Australian property investment and development scene, Mr Gore said it was approaching its future, including opportunities overseas, with an open mind.
