Broadbeach developer in joint venture with Ho Bee
GOLD Coast developer Villa World will team up with Singapore’s Ho Bee Land to deliver an $84 million joint venture project in Melbourne.
The Broadbeach-based company also announced it was forecasting 1H18 net profit after tax (NPAT) of between $17 million and $18 million – up from its August forecast of between $10 million and $12 million.
Investors responded positively sending Villa World shares up 11¢ or 4.35 per cent to close at $2.64.
Villa World managing director Craig Treasure said the joint venture with Ho Bee – an 285-homesite project in Wollert called Elyssia – was designed to maximise return on equity.
Villa World will have a majority share of the project, which it expected would add $5.2 million to 1H18 NPAT.
“The joint venture demonstrates that appropriate partnering arrangements can maximise our return on assets for the benefit of shareholders,” he said.
“We are delighted to be undertaking this project with Ho Bee Land, a Singaporeanlisted real estate developer and investor with significant global property interests.”
Ho Bee has a track record on the Gold Coast, developing the 41-storey Rhapsody building in Surfers Paradise.
It is also in the process of selling a 1.13ha site adjacent to Pacific Fair in Broadbeach, which it acquired for $22 million in a series of deals in 2012.
Villa World also reaffirmed NPAT guidance of $41.6 million for FY18.