Peet executes $615M joint venture
Key points
- Peet executed a joint venture deed for its Flagstone City Project.
- The deal is based on an agreed inventory value of $615 million.
- The transaction satisfies a key condition of a broader acquisition scheme.
Peet (ASX:PPC) executed a joint venture deed with Bechel and Hurose to sell a 49.9% stake in its Flagstone City Project based on a $615 million inventory valuation.
The transaction satisfies a key condition under the August scheme implementation deed in which Ingenia Communities Group (ASX:INA) proposed to acquire 100% of Peet shares.
A Peet subsidiary will retain 50.1% of the project and act as development manager if the acquisition is finalised.
If the acquisition terminates and Peet receives a $10 million reverse break fee from Ingenia, Peet will pay $1 million to Bechel Pty Ltd for negotiation costs.
Following the announcement, the Peet's share price was down at $1.50.
Hurose holds roughly 2.18% of Peet shares and operates under the wider Brown-Neaves Investments group.
Peet previously recorded an full-year net operating profit of $103.4 million and held $851 million in contracts on hand.
