Villawood and super fund Hostplus will redevelop 7.5 hectares of surplus land at Morphettville Racecourse, the last functioning racecourse in the Adelaide metro area, under a $350 million plan outlined by the South Australian Jockey Club on Monday.

The deal allows Villawood – which The Australian Financial Review reported in June was likely to secure the contract – to deepen its growing presence in SA, where the housing market has yet to tip into decline, by developing more than 150 apartments and 250 town houses and low-rise apartments.