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INVESTOR INSIGHT
OCTOBER 2016
CELEBRATING 30 YEARS
SUCCESS THROUGH PROPERTY
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MESSAGE FROM THE MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER
Following three consecutive years of double-digit
profi t growth, Villa World has made a positive start
to FY17 with strategic project site acquisitions in
Queensland, development approval for a
fl agship community at Logan Reserve,
a start to construction at the Gold Coast’s last
ever centrally located land release, as well as
a successful re-entry to the New South Wales
market.
These project milestones exemplify our strategy
of Focus, Grow and Lead as we continue to deliver
success through property.
Our success is something I am rightly proud
of, and I therefore extend an invitation to all
our shareholders to attend Villa World’s Annual
General Meeting in Broadbeach, Gold Coast,
on 3 November 2016.
Among other business at the AGM, we will put
forward Donna Hardman for election as a
non-executive Director. Donna was appointed
to the Board as an independent non-executive
Director on 17 February 2016. She is the Chair of
the Remuneration and Nomination Committee
and a Member of the Audit and Risk Committee
and has made a signifi cant contribution to our
Board in that time.
Together with Chairman Mark Jewell and
non-executive Director David Rennick, the
Villa World Board has played an important role in
focussing our business strategy and positioning
the Company for sustainable growth over the
next decade.
We are continuing to forge ahead to become
recognised as a leading east coast residential
house and land developer, and ultimately a leading
Australia property company.
So far in FY17 we have added more than 1,100 lots
to our portfolio as we maintain our fi ve to six-year
project pipeline. Further information on these
acquisitions is provided on page 3.
We have also seen our It’s So Easy Spring sales
campaign take off and highlight key points of
diff erence in the Villa World business model –
our one contract, one deposit, one fi nal payment
approach – which we know appeals to our target
customer segments.
Spring is traditionally a great time for house buying
and we have entered the season and FY17 with
continued sales momentum in our key Queensland
and Victorian markets, having brought forward
$165.6 million in pre-sales from FY16.
With positive market conditions, including
Queensland’s increase to the fi rst home buyer
grant, low interest rates and fl uctuating but
upward-trending consumer confi dence, Villa World
is targeting statutory profi t after tax growth of
at least 5% to $35.4 million in FY17. The Company
continues to operate with a prudently geared
balance sheet and expects net debt to assets to
remain comfortably within our target range of
15% to 30%.
Our Board is committed to continuing to pay
strong dividends, in accordance with the stated
payout policy of 50% to 75% of NPAT, paid semi-
annually. The Board anticipates paying a dividend
of at least 18 cents per share fully franked in FY17,
representing continued strong yield.
As we move beyond our 30th year in business,
Villa World has its sights fi rmly fi xed on the long
term. We are positively diff erentiated from our
competitors, highlighted by our unique business
model, our nominal overseas customer base and
100 per cent focus in the residential land and
housing market, and continue to maintain a strong
balance sheet and an upscale in delivery.
We look forward to bringing you continued success
through property throughout the year.
Craig Treasure
1 INVESTOR INSIGHT OCTOBER 2016
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“So far in FY17 we have added more than 1,100 lots to our portfolio as we maintain our fi ve to six-year project pipeline”
Killara - Logan Reserve, Queensland
2INVESTOR INSIGHT OCTOBER 2016
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ACQUISITIONS
The strength of the Villa World balance sheet
is refl ected in the maintenance of our fi ve to
six-year pipeline of strategic acquisitions within
growth corridors in east coast states.
Villa World has increased its footprint in
identifi ed Queensland property hotspots such
as Logan in the south east, Arundel on the Gold
Coast, and Strathpine on Brisbane’s northside.
The Company continues to target increased
geographic diversity as it moves towards a
40/40/20 split across its three major east coast
markets, being Queensland, Victoria and New
South Wales. We continue to pursue growth in
our Victorian land bank to match our already
substantial Queensland portfolio. This has been
buoyed by continued sales strength in the
Victorian market and increased market uptake of
the unique Villa World build model.
The Company continues to benefi t from strong
sales in Queensland, supporting further recent
acquisitions that give Villa World a greater
presence in the high-growth Logan market in
south east Queensland, while also increasing
the overall product mix. This includes a 700 plus
lot land project called Killara in Logan Reserve,
which will off er a selection of house and land
packages from leading builders, many of which
will be featured in the future Builders’ Display
Village (due to open mid 2017).
The Company purchased a 9ha site in Park Ridge,
adjoining and almost doubling the lot yield at
the Villa World Cottonwood estate to 300 lots.
Off ering house and land packages, this estate
will target the owner occupier market and is
expected to contribute revenue in 2H18.
A successful joint venture acquisition of 153
development-ready hectares at Greenbank
secured one of the most substantial residential
land parcels in South East Queensland, and also
further strengthened the Company’s relationship
with the Sydney-based Greenfi elds Development
Company. With Logan identifi ed as one of the
Top 10 best locations for property buyers seeking
capital growth, Greenbank will be developed into
a vibrant community, eventually home to around
4,000 residents.
It was another demonstration of the Company’s
use of capital effi cient means to progress
expansion of our footprint. Development and
project management fees will provide an ongoing
and growing revenue stream.
PROJECT NAME LOCATION STATE REGION PRODUCT # LOTSPURCHASE PRICE ($M)ii
Harmony (capital lite)i Cobbitty NSW SW Sydney H&L 10 $4.0m
Concourse (capital lite)i Oran Park NSW SW Sydney H&L 12 $4.8m
The Chase (development agreement)i Oran Park NSW SW Sydney H&L 93 tba
Dakabin Dakabin QLD N-Brisbane LO 108 $7.0m
Cottonwood (adjoining site) Park Ridge QLD Logan H&L 144 $7.3m
Greenbank (50% share) Greenbank QLD Logan H&L 750 $27.5m
South Morang South Morang VIC NE-Melbourne TH 60 $4.4m
1H17 Acquisitions 1177
(i) Announced on 17 August 2016.
(ii) Inclusive of GST as applicable
LO = Land Only; H&L = House & Land; TH = Townhomes
3 INVESTOR INSIGHT OCTOBER 2016
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SPRING SALES CAMPAIGN
The Company’s Spring sales campaign delivers
on the Villa World promise of architect
designed homes, complete and ready to move
into. The It’s So Easy campaign highlights the
unique selling points of the Villa World model,
including the one deposit, one contract, one
fi nal payment approach.
Executed across digital, print and television
during the high-rating Olympics coverage, the
campaign generated strong leads.
The campaign was timed to coincide with the
Company’s new look website which highlights
the extensive range of ‘addresses’ we off er
across the east coast.
Designer Living - 32 page magazine
Full page press ad
Website
Billboard Signage
TV Campaign
4INVESTOR INSIGHT OCTOBER 2016
into Summer
Spring
BRING THE OUTSIDE IN
Think about your dining room table
and kitchen, and try adding a bunch of
flowers or some greenery to make for
a lighter atmosphere and organic feel.
ADD COLOURFUL ACCENTS
Consider investing in a few accent
table pieces like some dishes in
summery shades.
LIGHT UP YOUR OUTDOOR AREA
Some coloured string paper lanterns
and fairy lights wrapped around tree
branches are both inexpensive and
effective ways to create a gorgeous
outdoor space.
SWAP UP YOUR WALL ART
It’s a great idea to invest in
something floral or beachy for the
warmer months. All you have to do
is make sure it complements the
accompanying furniture in the room.
IT’S ALL IN THE SCENT!
Believe it or not, the best thing you
can do to give your home a summer
feel is to choose a summery scented
candle and light it for an hour or two
each day to have your home smelling
like summer!
THE CHANGE OF SEASONS IS UPON US AND MANY OF US GET
THE URGE TO CHANGE IT UP A BIT AT HOME! THERE ARE A FEW
SMALL AND SIMPLE THINGS YOU CAN DO AROUND YOUR
VILLA WORLD HOME TO MAKE IT TRULY FEEL LIKE SUMMER.
In the Winners’ CircleMustafa and Fermude Karacan
Villa World is celebrating its 30th birthday by giving away $30,000
worth of holidays in 2016. Meet Mustafa and Fermude Karacan,
the Melbourne couple who were lucky enough to win the second
draw in early May, receiving a $5,000 travel voucher courtesy of
helloworld.
These new home owners at Lavinia in Greenvale love the low
maintenance design and the quality of finish of their new home.
Join Villa World, Mustafa and Fermude in the celebrations.
All buyers who purchase a Villa World property in 2016 are
automatically entered into the
draw. Terms & conditions online
at VILLAWORLD.COM.AU
It was so easyCassandra & Christopher Bennett
First home buyers Cassandra and
Christopher Bennett weren’t even
looking when they stumbled across their
Villa World home at Era in Capalaba.
The young couple enjoy the benefits of a
complete Villa World address and home
as well as the stylish design features.
“Having something ready made really
appealed to us. We were able to pick
from all the different designs but
have a professional do the specifics
for us,” Cassandra says.
“We had our first Christmas in the
house and when the tree went up,
it felt like home.”
05Designer Living 05Designer Living
Christopher Bennett weren’t even
looking when they stumbled across their
Villa World home at Era
SPRING 2016
CHOOSE YOUR ADDRESS
CHOOSE YOUR HOME
It’s so easy! SEE IT for yourself at one of our
20 addresses across Queensland
and Victoria
Completed designer homes now selling
VILLA WORLD
BRINGS YOU
NEW DESIGNER
HOMES
NOW SELLING
THIS SPRING
SPRING
2016
EDITIONdesigner
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Whilst care has been taken in the preparation of this advertisement, the particulars are not to be construed as containing any representation of the facts upon which any interested party is entitled to rely. All interested parties should make their own enquiries. Information contained is correct as at the time of publication.
CELEBRATING 30 YEARS
SUCCESS THROUGH PROPERTY
CHOOSE YOUR ADDRESS
CHOOSE YOUR HOME
It’s so easy! SEE IT for yourself at a Villa World
address in Redlands
For 30 years, Villa World has been creating new
homes for Queenslanders - completed homes in
complete communities, landscaped and ready to
move into.
We ask for only one deposit and one final payment.
It’s so easy! No wonder more than 40,000 Australians
call a Villa World address their home.
SEE IT for yourself at a Villa World address near you.
Completed homes now selling from $445,000
3 NEW DESIGNER
HOMES OPEN!
DISPLAY HOME NOW OPEN
LAST CHANCE TO LIVE AT ERA
Seascape is a modern coastal village just 900m
from the proposed Weinam Creek Marina.
• 3 bedroom designer homes • Swimming pool,
barbecues and community garden
3 bedroom homes from $445,000
Display home open 10am – 5pm daily
Salisbury Street, Redland Bay
Phone 1800 312 983
A contemporary address set beside a natural
bushland sanctuary • Latest range of 4 bedroom
designer homes • Stages 6 and 7 is a secluded
pocket of Era that can never be built out
4 bedroom designer homes from $508,000
Display home open 10am – 5pm daily
Springbrook Dr, off Redland Bay Rd, Capalaba
Phone 1800 726 720
Master planned beside a bushland creekway,
Ellabay offers a modern family lifestyle
• Stunning new range of 4 bedroom designer
homes ready to inspect • Prestige land now selling
4 bedroom designer homes now selling
Display home open 10am – 5pm Sat to Wed
(closed Thurs & Fri) 2 Muller Street, Redland Bay
Phone 1800 019 515
Looking for land in Redlands? SEE IT on our website: villaworld.com.au
Click on Affinity and Waterline in Thornlands
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MARKET UPDATE
The Queensland residential housing market remains
strong, particularly in the South East corner of the
state where fi rst home buyer incentives continue to
contribute to solid growth.
Villa World’s popular Bayside portfolio recorded
strong sales during the fi rst quarter and off ers a
reliable mix of project and price off erings. Waterline,
off ering 227 land lots at Thornlands, and the nearby
118-lot Affi nity are both selling well, having benefi ted
from the opening of Waterline’s Display Village on
27 August at the Bayside Homes Expo. With display
homes by 10 national builders, Villa World is an
emerging name in the ‘land’ space in this market, as
well as an established ‘house and land’ provider.
The fi nal lot sale at Mt Cotton Village has been
quickly followed by the last construction stage at the
200-lot Era at Capalaba, released for sale in October
and selling strongly. Homes and homesites at Ellabay,
comprising 84 lots at Redland Bay, will also sell out
in FY17. Nearby Seascape, with 187 lots, was released
into the market this quarter with an onsite display and
construction underway.
On Brisbane’s northside, Villa World’s completed
projects are being replenished with new developments
in the pipeline at Caboolture and Strathpine.
Construction at the very successful Park Vista (533
lots) is complete, with just a few homesites remaining
for sale. This fl agship project has delivered consistently
strong sales, with similar interest expected at the
replacement project at Strathpine where 383 lots are in
the planning.
Only a few homes from the 209-lot Circa at Nudgee
are available, and just under half of the 81 premium
homesites at Riva in Joyner, remain on the market.
Adding to the Company’s market diversifi cation is the
167-home development at the fl agship community of
Rochedale Grand, on Brisbane’s south (see back page).
Under a Joint Venture with Ausin Rochedale Pty Ltd,
Villa World is building premium architect-designed
residences to be off ered under traditional progress-
payment contracts. Momentum is building with this
project as civil works for stages one and two are
complete and home construction has commenced.
Strong interest from local upgraders prompted a
sell-out at the 81-lot designer home development at
Woodlands in Logan, called The Sanctuary.
This strong response has created momentum for
the Company’s planned 726-lot Logan land project
called Killara, where civil construction is set to start
in 2Q17. Nearby Cottonwood, at Park Ridge, and the
newly acquired Greenbank joint venture round out
the Company’s expansive footprint within the Logan
market.
Home buyer incentives in Queensland’s Fraser Coast
region are expected to boost sales of Stage 9 of
the Augustus estate at Hervey Bay, due to market in
early 2017. With the Destination Hervey Bay grant
extended beyond the initial June 30, 2016 expiration
date, eligible buyers will benefi t from a $12,000 grant
for new land or house-and-land packages at approved
residential developments, including
Villa World’s Augustus. And as of July 1, the
Queensland Government’s First Home Owners Grant
has increased from $15,000 to $20,000 for eligible
buyers.
An infrastructure boom on the Gold Coast is
spearheading the Queensland construction industry,
evidenced by strong sales at Villa World’s residential
developments. Only a handful of the 179 lots remain
at Parkside, Coomera, with stage one of Seabright,
at Jacobs Well, close to sold out and stage two to
be released with the opening of a display village in
October. This project will comprise 107 designer
homes at completion.
Villa World’s master planned 305 homesites and 90
townhomes at Arundel Springs will soon take shape
with construction commenced and sales ready to
begin. Homesites will range in size from 306m2 to
954 m2, with strong appeal to a diverse buyer profi le.
QUEENSLAND
Arundel Springs - Arundel, Queensland
5 INVESTOR INSIGHT OCTOBER 2016
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Positive market conditions for residential
property continue in Victoria where sales from
the Company’s turnkey housing model are
gaining increased popularity, and land-only sales
have strengthened.
Cardinia Views (320 land lots), in Pakenham
south-east of Melbourne, is in its fi nal stages
with builders taking advantage of family-sized
blocks, close to amenities.
To the city’s north, at Greenvale, house and
land product at Lavinia (131 lots) is near to
sold out. The mix of land and house and land
off erings at Sienna in Plumpton to the north
west, is also contributing strong sales, with
more than 80% of the project sold out. This
project is expected to lead in to another 254-
lot development in Plumpton. Settlement of
Villa World’s unconditional acquisition is tied to
the gazettal of a Precinct Structure Plan for the
area, expected mid CY17. Villa World plans to
deliver a turnkey house and land development
with average lot sizes of 429m2.
Conditional sale of the Company’s Donnybrook
joint venture is expected to free up capital
to develop the remainder of the project and
reinvest in new sites. This delivers Villa World
further geographic diversity in Melbourne
growth corridors while maintaining a signifi cant
project in the Donnybrook precinct.
Villa World opened a Sydney offi ce during FY16
to manage its re-entry into the New South
Wales market and to evaluate further market
opportunities, particularly around the western
Sydney regional growth corridor.
Project milestones have included completion
of 55 land lots at Lacosi Hill in Schofi elds, with
capital allocation rolled into Allure in Box Hill,
for a 44-lot land project, where civil works
commence in FY17.
The Company also commenced construction
of two capital lite house and land projects at
Cobbity and nearby Oran Park, both in south
west Sydney, comprising a total of 22 lots.
Also at Oran Park, the Company is fi nalising
a development agreement with Greenfi elds
Development Company to deliver an initial
90-plus homes.
Lavinia - Greenvale, Victoria Sienna - Plumpton, Victoria
Cardinia Views - Pakenham, Victoria
NEW SOUTH WALESVICTORIA
6INVESTOR INSIGHT OCTOBER 2016
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QUEENSLAND
Level 1 Oracle West, 19 Elizabeth
Avenue, Broadbeach QLD 4218
PO Box 1899, Broadbeach QLD 4218
+61 (0) 7 5588 8888
info@villaworld.com.au
VICTORIA
99 Coventry Street,
Suuthbank VIC 3006
+61 (0)3 9693 7800
info@villaworld.com.au
NEW SOUTH WALES
Level 3, 201 Miller Street,
North Sydney NSW 2060
+61 (0)2 8923 1900
info@villaworld.com.au quadra
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wVilla World Limited ABN 38 117 546 326 villaworld.com.au
Rochedale Grand - Rochedale, Queensland
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