One of Australia's oldest residential developers is embarking on an aggressive expansion strategy, seeking funding partners to capitalise on the nation's red-hot housing market. Peet Limited announced it will pursue larger projects through strategic partnerships following a comprehensive review by investment bank Goldman Sachs.
Strategic Shift Toward Partnership Model
Speaking at the company's annual general meeting in Perth, acting leader Greg Wall revealed that while the Goldman Sachs review didn't recommend major structural changes, it highlighted the critical need for Peet to bring more capital partners into its development pipeline. The 130-year-old company acknowledged it faces limitations in how many large-scale projects it can fund independently.
"There are limitations on the number and size of projects we can undertake on our own balance sheet," Mr Wall told shareholders. "This highlighted the strategic importance of our funds management capability, and the continued exploration of further capital partners to co-fund projects."
Leadership Transition Amid Market Boom
The strategic repositioning comes during significant leadership changes at the Western Australian-based developer. The company has seen a complete overhaul of its senior management over the past year, with long-time chair Tony Lennon stepping down at last year's AGM and selling nearly one-third of his family's 20.5 percent holding last month.
Adding to the transition, chief executive Brendan Gore departed five months ago after two decades with the company. Chief financial officer Brett Fullarton is currently running Peet as interim chief executive while the board searches for a permanent replacement for Mr Gore.
East Coast Focus and Financial Performance
The strategic review has sharpened Peet's focus on master planned community residential estates, primarily on the east coast, though the company will still pursue selective opportunities in and around Perth and Adelaide. The company confirmed that townhouse and low-rise apartment projects will be pursued opportunistically, based on geography, capital requirements and forecast returns.
Peet's financial performance reflects the booming housing market conditions. The company's net profit jumped $20 million to $58.5 million in the 12 months to June 30, with management forecasting $74 million to $78 million for the current financial year.
Investor enthusiasm is evident in the company's share price performance. After hitting a record $2.10 on Wednesday, Peet's shares closed 3¢ down at $2.02 on Thursday, still representing an impressive 43 percent gain for 2026.
The company's project pipeline continues to strengthen, with $750 million of contracts in hand as of November 17, representing a 23 percent increase since June 30.
Mr Wall pointed to a "unique confluence of favourable macro conditions" driving the Australian residential sector, including strong population growth, constrained housing supply, growing appetite for investment from overseas capital partners, and an increasingly favourable borrowing environment.
