VILLA WORLD CRACKS A $35M HOUSING TREASURE
Written on the 4 December 2014 by Nick Nichols
VILLA World has tapped into the final stage of a Lend Lease project at Waterford with plans for a $35 million residential project known as The Sanctuary.
The project adds to a growing list of housing developments the Gold Coast company has in the pipeline for south-east Queensland, including a bigger presence on the Gold Coast.
The Sanctuary is located within Lend Lease's Woodlands estate which is nearing completion after about seven years of development.
Villa World is building 81 homes over the next 18 months which will coincide with Lend Lease wrapping up development of the 137ha Woodlands development, located in the Brisbane-Gold Coast corridor and now home to 3500 people.
The Sanctuary is expected to add to Villa World's bottom line in FY16, although development has been earmarked to start early next year.
"We're good at finding these deals," says Villa World CEO Craig Treasure.
"This project is an example of Villa World's willingness to enter into strategic transactions with larger property groups, to take advantage of our capacity to deliver completed homes and streets.
"Woodlands suits our demographic and is in an area of Brisbane with good jobs, and thats what counts for us.
"The beauty of this project is that it has full approvals, so we will start civil works in February, start building in May with settlement likely in in September and October next year."
Treasure says the finished products will "perfectly hit" the company's price zone with home prices ranging from about $390,000 to below $450,000.
They will target first and second home buyers, as well as what Treasure says is a growing market in empty-nesters downsizing.
Meanwhile, the Villa World CEO is hoping interest rates stay where they are and don't head lower, as some market analysts are tipping for the year ahead in the wake of continued weakness in the economy.
"I'd prefer them to sit where they are," Treasure says. "As a developer we love low interest rates, but we also need strong consumer confidence and a strong economy."
Author: Nick Nichols