Developer, Future Fund join forces

West Australian-based property developer Peet Limited yesterday announced a partnership to buy land in areas of projected population growth and develop master-planned communities.

The arrangement is expected to be worth more than $300 million over 10 years.

Peet owns or manages subdivisions on Melbourne's fringes, including Innisfail in Point Cook, Tarneit Gardens in Werribee and Cardinia Lakes in Pakenham.

One of its former subdivisions, Cranbourne's Brookland Greens estate, is subject to continuing legal action after hundreds of residents were forced to evacuate in 2008 because of dangerously high levels of methane, which had leached from a nearby land-fill site.

Residents won a landmark $23.5 million settlement. But the estate's manager, Peet & Co Casey, was recently named among nine other third parties in a legal action by Casey Council to recoup costs.

The Future Fund is an investment fund set up by the Federal Government to cover future superannuation payments for the public service.

Head of public affairs Will Hetherton said the partnership was "something quite specific and new". The fund had $4.45 billion invested in various property assets, he said.

Brendan Gore, managing director of Peet, said that under the agreement Peet would buy land, put it through the rezoning and planning process, service it with roads and other infrastructure and then sell the lots to builders or home buyers.