The University of Canberra (UC) has sold a 15 hectare slice of its Belconnen campus to Peet Group, which will replace it with over 1600 dwellings.
The deal – a restructure of an agreement made in April, 2016 – will add c$67 million to the school’s coffers.
It will also hand full control of the profits to the buyer (whereas five years ago, UC would have donated the land and proceeds would have been split).
Settlement is conditional on the ACT government granting a crown lease.
If approved, Peet will pay in instalments between 2022-2029.
The developer, via its subsidiary CIC Australia, in a joint venture with Mirvac, is also behind a $1.7 billion housing estate and town centre at Googong – just outside of the ACT.
Project could get bigger
As part of the revised Belconnen agreement, Peet will have the option to acquire an additional 6.2ha parcel from UC between 2027-2030 (story continues below).
“This restructured deal has been negotiated on capital efficient terms and allows Peet 100 per cent control of an exciting an innovative project that will be integrated with the broader UC campus masterplan,” Peet managing director and chief executive officer Brendan Gore said.
“The [15ha] property has the potential to deliver more than 1600 residences through a mix of townhouses and apartments and more than 1000 townhouses and apartments across the option land,” he added.
“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”.
Peet estimates the project’s gross sale value will exceed $1b.
The UC campus spreads 120ha; the school has also mooted a social hub, health precinct and innovation park to rise alongside the residences.
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