Villa World Ltd.'s 51/49 joint venture with CVC Ltd. signed conditional contracts to sell the development land parcel at 960 Donnybrook Road in Australia for A$100 million to Blueways Holdings Pty. Ltd. unit 960 Blueways Pty. Ltd.
Donnybrook JV Pty. Ltd. received A$10 million in upfront payments, with the balance of the consideration to be paid in staged settlements over 40 months.
The total consideration for the project, including the divestment of adjoining parcel at 1030 Donnybrook Road to Satterley Property Group Pty. Ltd., amounts to approximately A$134 million.
From the two sales, Villa World Managing Director and CEO Craig Treasure expects the venture to register profit before tax of more than A$100 million over four years, weighing in development and holding costs of about A$8.5 million. CVC expects to pocket roughly A$49 million from the partnership that paid about A$23 million for the land, according to a company release.
The current deal is pending the approval of the Shenstone Park Precinct Structure Plan by June 30, 2022. It is expected to be approved in the second half of 2019.
The 960 Donnybrook site spans roughly 208 hectares, of which the selling party will retain certain portions.