Ardent gets lift as it lets Goodlife go
Villa World marks 30 years delivering homes
GOLD Coast theme park operator Ardent Leisure is selling its underperforming Goodlife Health Clubs for $260 million as it looks to fund its rollout of family entertainment centres in North America.
Quadrant Private Equity is the buyer, loaning Ardent $30 million interest-free and paying $230 million in cash.
Ardent said the sale would strengthen its balance sheet while helping expand its operations in the US, where it has 21 bowling alleys and entertainment centres.
Chief executive Deborah Thomas said the decision ensured it could invest in more profitable parts of its business.
The sale comes as the Australian market is saturated with gyms, with Goodlife struggling to compete.
It had one of the largest networks in Australia, with 76 locations and 200,000 members.
The sale is expected to settle in the second quarter of next year.
Ardent owns the Dreamworld and WhiteWater World theme parks on the Gold Coast as well as Skypoint climb at Q1.
In March it listed its d’Albora Marinas business for sale.
D’Albora has two marinas in Melbourne, three in Sydney Harbour and two on the NSW north coast.
AAD shares closed up 25¢, or 10.87 per cent, at $2.55. VILLA World last night celebrated a major milestone.
The Gold Coast bornand-bred developer marked 30 years in operation.
Queensland’s oldest listed property developer and one of Australia’s largest housing providers, Villa World was started in 1986 by Tony Bawden and Greg Phillips.
The pair developed a formula for “affordable” homes, went public in 1986 to raise capital from shareholders and capitalise on the newly introduced franking system for dividends.
They built the company on a simple idea: “Create Australia’s most affordable new homes and deliver them complete, landscaped and ready to live in.”
Villa World started with a simple suite of house and duplex designs.
By the early 1990s, it boasted a portfolio of residential projects on the Gold Coast from Tweed Heads to Coombabah.
The company has plans to be a major east coast property player, with operations in three states. More than 40,000 Australians have made a Villa World address their home.
Villa World has moved its HQ four times and today houses 66 of its 108 staff at The Oracle at Broadbeach.
Now headed by property industry veterans, managing director Craig Treasure and chairman Mark Jewell, Villa World has posted a string of record results under Mr Treasure’s four-year helm.
This week, it posted a 32 per cent hike in full-year net profit, to $33.7 million, as settlements of new house and land packages jumped by almost one-third.
Mr Treasure said Villa World had found the recipe for success by staying with its affordable housing roots, focused on owner-occupiers, first homebuyers and local investors.
“I’m very proud of our story and I’m very proud of our team,” Mr Treasure said.
He said some Villa World staff had been with the company for 10 years and one for more than two decades.
Almost 300 guests attended Villa World’s celebration last night at Jupiters Casino.