Ingenia to swallow Peet in $1b housing deal
Ingenia Communities is set to swallow residential developer Peet for c$1 billion.
The deal will give the land-lease operator control of one of the country’s larger residential development pipelines.
Under the proposed scheme, Peet shareholders will receive $0.68 cash and 0.3367 Ingenia stapled securities per share, implying $2.12 per Peet share.
Including Peet’s 6.5c final dividend, the total consideration rises to $2.185 per share, valuing the transaction at about $992m.
The deal follows Peet confirming it was in discussion with Ingenia last month.
Peet’s board has unanimously recommended the scheme, subject to an independent expert finding it to be in shareholders’ best interests.
UBS advised Ingenia on the transaction.
Pipeline play
Peet has about 26,400 lots in its pipeline, while Ingenia has about 8800 development lots.
Ingenia estimates between 5000 and 7000 of Peet’s lots could be suitable for conversion to its land-lease model, with an expected end value of about $1b.
The combination would create what the companies describe as Australia’s largest ASX-listed pure-play living sector platform, spanning land-lease communities, residential development and holiday and rental accommodation.
The transaction is also being used to recycle capital from Peet’s flagship Flagstone project in Queensland – Ingenia has agreed to sell a 49.9 per cent interest in the Flagstone asset to Brown-Neaves Investments, based on an enterprise value of $615m enterprise value for the project. The valuation represents a $368m uplift on Peet’s $247m book value at June 30, 2026.
That sale is conditional on completion of the Ingenia-Peet transaction and is intended to reduce the funding burden of the acquisition (continues below).
If the takeover goes ahead, Ingenia’s pro forma gearing would be about 29.5 per cent, within its target range, according to its transaction presentation.
The deal comes after Peet reported record FY26 earnings, with net operating profit of $103.4m, up 77pc, and contracts on hand of $851m, up 39pc.
Its net tangible assets rose to $1.49 per share while net debt fell to $201.3m.
Queensland pipeline
The deal comes as both groups continue to build exposure to Queensland’s growth corridors.
Ingenia is building Toowoomba’s largest land-lease community at Highfields – Darling Downs – on a 33ha site acquired in 2024.
An over-50s community with c800 dwellings is approved there.
Peet, meanwhile, has been active on the Sunshine Coast, paying $56m in partnership with Brown-Neaves Investments for 33ha at Palmview, also in 2024.
That site was expected to yield about 470 dwellings and extend Peet’s adjoining Village Green community.
The Ingenia takeover is expected to be implemented in late December, subject to shareholder, court and other approvals.
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