Ho Bee buys more shares in Villa World, a $280 million takeover target of Avid Property Group

The developer of the Rhapsody tower in Surfers Paradise has increased its stake in a listed Broadbeach company that’s already the target of a $280 million takeover.

A bird's eye view of Villa World's Killara development in Victoria.

THE developer of the Rhapsody tower in Surfers Paradise has increased its stake in listed Broadbeach company and takeover target Villa World.

Entities linked to Singaporean group Ho Bee, already the majority shareholder, has spent more than $4.5 million on Villa World shares since January 31, lifting its voting power from 7.61 per cent to 9.41 per cent.

Ho Bee’s Rhapsody in Surfers Paradise. Photo: David Clark

The Australian arm of international fund manager Avid Property Group last week launched a bid for the Gold Coast developer, which valued the company at close to $280 million.

The proposal, which Villa World has stressed is conditional and a long way from receiving the board’s blessing, forms part of Avid’s plans to expand its presence on the east coast.

Avid, formerly Investa Land, was bought by Proprium Capital Partners in 2015 and says it has a pipeline of $3 billion worth of broad acre and medium-density residential and industrial projects.

Craig Treasure, Villa World, CEO/Managing Director.

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It has indicated it would offer $2.231 per share to acquire all 125 million securities in Villa World.

Shares in Villa World, trading at $1.99 before the takeover announcement, were at $2.20 this morning.

Villa World, which reported a profit of $17.6 million for the half year, said it has appointed advisers to consult on the deal, which it said was subject to a range of conditions, including due diligence.