VILLA WORLD JOINS FORCES WITH SINGAPORE DEVELOPER ON MELBOURNE PROJECT

VILLA WORLD JOINS FORCES WITH SINGAPORE DEVELOPER ON MELBOURNE PROJECT

GOLD COAST-based property developer Villa World (ASX: VLW) has announced a joint venture agreement with Singapore's Ho Bee land that will deliver 285 homes sites north of Melbourne's CBD.

The joint venture relates to Villaworld's two previously contracted land sites in the suburb of Wollert, comprising 16 hectares adjacent to the future Wollert town centre.

The new Elyssia community is expected to gross an end value of $84 million, offering home sites with an average land size of approximately 395m squared and an expected average sale price of $300,000.

Villa World's general manager of operations Michael Vinodolac says the project is a culmination of both companies' search for joint opportunities.

"We are very pleased to be working with Ho Bee on this project as both groups have been jointly pursuing opportunities for some time," says Vinodolac.

"We share a similar risk appetite and a disciplined approach to capital deployment."

Villa World CEO Craig Treasure echoed the sentiments of his colleague, saying in a statement that the joint venute is a "continuation of the company's capital management strategies" and that the move demonstrates a partnering arrangement which "can maximize Villa World's return on equity".
The Elyssia project marks Ho Bee's first land subdivision development in Australia since its entry into the Australian market in 2012.

The venture is expected to contribute around $5.2 million to Villa World's 1H18 net profit after tax (NPAT).

Off the back of the development, Villa World has increased its NPAT guidance to $17-18 million for the half year and has reaffirmed its full year guidance to be at least $41.6 million.

The two companies will contribute capital on the basis of a 51-49 per cent split in favour of Villa World.

VLW shares jumped 6.7 per cent today to trade at $2.70 at the time of writing (12:42pm AEST).

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Fashion retailer Accent Group to cut Glue Store location count in half

Fashion retailer Accent Group to cut Glue Store location count in half

The ASX-listed fashion retailer responsible for such brands as Plat...

Domino's to shutter 100 stores after crusty results

Domino's to shutter 100 stores after crusty results

The board of Domino's Pizza Enterprises (ASX: DMP) waited until...

Wing enters largest Australian drone delivery area to date through Melbourne launch with DoorDash

Wing enters largest Australian drone delivery area to date through Melbourne launch with DoorDash

Alphabet-owned drone delivery company Wing has announced its entry ...

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Australian Wine Holdco, a consortium that owns the country’s ...