Peet launches a new syndicate for Perth property

Peet & Company Ltd has launched a new property syndicate through which it hopes to raise $8.5 million for a 19.7-hectare parcel of land in the Perth suburb of Byford.

The listed land developer announced today that it had issued a prospectus for the Peet Byford Syndicate Limited.

Peet & Company Ltd managing director Warwick Hemsley said "This is a traditional Peet syndicate. It is a single purpose company created to purchase a landholding with the intention to subdivide it and sell resulting housing and other blocks. Profits are typically returned as fully franked dividends with capital progressively returned to shareholders over the life of the project.

"The property is strategically located immediately adjacent to the Byford Town Centre; a designated activity centre and part of the Western Australian Government's blueprint for the future development of Perth. Byford is expected to house over 20,000 people over the coming years and is already experiencing a rapid increase in development activity and residential lot prices.

"As well as being adjacent to the Byford Town Centre the property is close to existing primary schools, a proposed high school site and it is just 400 metres from the existing railway station, which is earmarked for future upgrade to a commuter station. The property is zoned Urban Development in the local Town Planning Scheme and has an area of 19.7 hectares (approximately 50 acres)," he said.

It is proposed that the property be developed in the future for a range of 'inner-urban' uses such as residential lots, medium density housing, commercial uses and retirement housing as is appropriate for the doorstep of a town centre.

The offer of shares, as detailed in the Prospectus, is for 8.5 million $1.00 shares payable in full on application, with a minimum application of 5,000 shares. The issue is fully underwritten by Peet & Company.

Peet, its subsidiaries and syndicates under management produced before tax profits for investors for the 2005 financial year of $115 million. These entities sold a total 2,507 lots in the same financial year.