When Tony Lennon bought control of the near century-old property developer Peet, Alan Bond, Robert Holmes à Court and Laurie Connell were dominating the business headlines.
Forty years later, he’s readying to pass on the baton, with Peet on Thursday announcing he will step down as chair at the annual meeting in October as part of a succession disclosed last year.
The 82-year-old will be succeeded by fellow director Greg Wall, the former chief executive of motoring co-operative Capricorn.
Having worked in real estate and then founded his own property company, Mr Lennon paid $100,000 for a 51 per cent stake in Peet in 1985, teaming up with Warwick Hemsley to stabilise the loss-making group, expand it to the east coast and eventually list it on the ASX in 2004.
“I knew they were having problems, weren’t trading well and needed some fresh blood — people said it was terminal, but it had a great name and brand behind it, the big challenge was to get into profitability and get revenue going,” Mr Lennon recalled 20 years later.
“A terrific attraction was the WA background of the company, but it was daunting to take on a business that was making losses — it wasn’t until about three months in that I realised what a big job it was.”
Mr Lennon realised $60 million by selling down his Peet stake to 35 per cent in the ASX float, using the proceeds to build a broader private investment portfolio and support an increasing range of philanthropic causes.
“I feel that people who have wealth and spent it are actually doing a positive thing for the economy,” he told The West Australian in 2011.
“You do create employment, whether you’re building a house or a new toy, or whatever it might be.
“I’m of the view that wealthy people should be committed to philanthropy to the extent they can afford it. But in any case, spending their money is a very positive thing.”
Mr Lennon’s personal wealth has been variously estimated at $350m to $500m, including his major 20.1 per cent stake worth at $124m at Thursday’s close of $1.27.
The shares were worth considerably more when demand for homes and land soared during the mining boom of the Noughties, topping $4 in 2006.
Mr Lennon’s departure was announced as Peet handed down a 48 per cent slump in annual profit to $36.5m, blaming lower sales in the Victoria, NSW and ACT markets whether it has several high-margin projects.
The final dividend was cut to 2.75¢ a share from 4¢ previously.