This article is from the Australian Property Journal archive
US-based Avid Property Group’s takeover of Gold Coast developer Villa World is going ahead after the Supreme Court of New South Wales gave the proposal the green light.
Villa World shareholders voted overwhelmingly in majority on Friday for the deal, a week after it was also checked off by the Foreign Investment Review Board.
Avid will increase its portfolio from 10 to 37 projects across the eastern states, with more than 12,000 residential lots and a gross revenue pipeline of $4.7 billion. Villa World currently has 27 communities.
Chief executive officer of Avid, Cameron Holt said the acquisition was a strategic move combining two strong performing and complementary businesses, and would make Avid a significant Australian property player and add to its already diverse mix of developments.
“The success of this merger means we will strengthen our presence in south east Queensland, in particular, with an additional 16 projects – further positioning Avid as a key national industry contributor.”
He said the combined business would have greater scale and diversity in its product offering, with Villa World’s portfolio including medium-density living and masterplanned communities.
Villa World will cease trading on the ASX today, and implementation of the scheme will occur on 30th October.
Avid made an unsolicited initial offer of $2.23 per share in March requested due diligence, and made a revised takeover offer of $2.345 per share which Villa World board accepted.
Villa World had posted 47% drop in full-year profit due to the soft housing market.
