Gold Coast developer Villaworld taken over by Australian arm of US-based real estate fund following shareholder approval

Shareholders have approved a takeover of the Gold Coast’s oldest listed company and biggest listed developer.

Villa World which has developed a number of housing estates in Australia, including the 714-lot masterplanned Killara community at Logan (pictured), will be taken over by Avid.

VILLA World today becomes the latest Gold Coast company to leave the stockmarket after shareholders approved a $290 million takeover by the Australian arm of US-based real estate funds manager Proprium.

Shareholders this afternoon overwelmingly approved the deal, which will see them paid $2.345 per share, by a wide margin with 97.96 per cent of votes cast in favour. The final vote tally, including votes cast at today’s meeting, will be published later this afternoon.

The exit of Villa World from the bourse ends a long history as a listed company and follows the departures of iconic Burleigh company Billabong and hotel juggernaut Mantra Group last year.

Villa World first announced the bid by Proprium-owned Avid Property Group in March, when the offer was $2.231 a share. The board gave its approval when that was increased to $2.345, made up of a 31¢ special dividend and $2.035 cash.

Arundel Springs, a Villa World estate on the Gold Coast, has seen strong sales since its launch.

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The Foreign Investment Review Board gave its consent earlier this month and Villa World announced this morning that the 31¢ dividend will be paid out by October 28.

Villa World’s last day on the ASX is scheduled for Wednesday.

The company’s directors have supported the takeover due to it “delivering certainty and immediate value” to shareholders, as well as the franking credits that may be due, and because a superior proposal hasn’t emerged since the offer was made.

Avid noted in the scheme booklet that was sent out to shareholders that Villa World shares many similarities to Avid’s culture and “sees the organisations as a strong fit”.

Villa World managing director Craig Treasure supported the Avid takeover.

“Avid recognises the knowledge and experience of Villa World’s employees and intends to integrate the two businesses over the short term without significant disruption,” the booklet read.

Villa World reported a net profit of $22.9 million for FY19, 47 per cent down on the previous period.

Revenue fell 11.3 per cent to $391.6 million, including 1049 settlements compared to 1303 in the previous period. The company said the result reflected the decline in the residential housing market and softer consumer sentiment.

Villa World was founded by Tony Bawden and the now late Greg Phillips in 1986.