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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).
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