VILLA World Group (ASX: VLW), has purchased a 153-hectare site at Greenbank, 34 kilometres south of Brisbane, for $50 million in a joint venture with Greenfields Development Company.
The site has been approved for 1,000 residential lots for part of the site and the partners will seek approval for a further 500 lots for the remainder.
House sites will range from 300 sqm to more than 2,000 sqm and will the area will eventually be home to 4,000 residents.
Villa World managing director and CEO, Craig Treasure, says the venture builds on the Gold Coast company's relationship with Greenfields, a family-owned business based in south west Sydney.
He says Greenbank will bolster Villa World's presence in the growing Logan corridor.
"This is a well-located property, which is in the growing area of Brisbane and has some essential elements, such as schools, shops and amenities, that people want to live near; and it is in reasonable proximity to Springfield Town Centre and its university and hospital."
Treasure says work will commence quickly - the first stages will be built in 12 months and the entire development will be finished in five to seven years.
"Our focus on delivering a high quality, yet affordable product for our customers will continue to drive strong sales across our projects in south east Queensland," says Treasure.
The two companies were previously working together on a 90-home development in Sydney's south west.
"We have built a strong relationship with them in that we really share common values in regards to community outcomes and looking after the customer.
"We're very pleased about the initial project in Sydney and have been fortunate to acquire a site in Queensland, as Greenfields are interested in diversifying their portfolio into this state as well."
Greenfields Chairman, Tony Perich says, "We are pleased to be diversifying into Queensland in partnership with proven residential developer Villa World.
The site was purchased from Teviot Downs Estate through Tony Williams and Mark Creevey from Ray White Special Projects.
The purchase will be funded through a combination of equity contributions into the joint venture, and project finance. Settlement will occur in stages during FY18 and FY19.
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