‘Faulty tower’ row ends

Villa World reaches agreement on Tweed’s Silverstone

GOLD Coast developer Villa World has ended its fight with the owners of its alleged “faulty tower” Silverstone apartment complex at Tweed Heads.

Villa World said yesterday its agreement with “all parties” involved in the dispute had received Federal Court approval.

The developer again said the terms of the settlement were confidential. However, Villa World reiterated its contribution to the proposed settlement amount and the costs of finalising the agreement were not expected to be “materially different” from provisions it made in financial statements as at June 30, 2016.

Its FY16 financial statements said Villa World had made provision for around $8.5 million as at June 30, 2016 over the potential Silverstone claim.

This is in addition to provisions made for legal fees and expert costs which have been made since June 30, 2015 and expensed through the cost of sales.

The agreement means the listed Broadbeach-based Villa World has avoided a lengthy lawsuit over the Silverstone tower after previous attempts at mitigation failed.

It has been involved in bitter and protracted litigation over alleged defects at the residential building in Tweed Heads comprising 27 units which was completed in 2009.

A Villa World subsidiary, Villa World Developments Pty Ltd, was the registered builder.

Villa World Developments engaged independent subcontractors for construction.

The highrise allegedly is riddled with defects including corrosion and rust, mould and leaks.

Villa World has been embroiled in a fight with the Silverstone owners corporation and unit owners since late 2013.

Villa World previously said it was one of six respondents in the proceedings.

The owners also were suing several other parties, including the suppliers of the walling system, linked to controversial cult the Exclusive Brethren, alleged to be defective, and the structural engineers for the building.

Villa World in turn sued those parties.

A Federal Court trial had been set for October 5 to 28.

However, Villa World said yesterday that the proceedings will be discontinued, “following compliance by all parties” with the terms of the deed of settlement.