ASX-listed residential property developer Villa World has expanded its development footprint in Victoria after acquiring two residential development sites in Plumpton in Melbourne's northwest for $44 million.
The two sites totalling 32.9 hectares can yield more than 500 lots, featuring house and land packages - Villa World's specialty - and vacant lots.
The sites are part of two precinct structure plans for the Plumpton region, to be gazetted later in 2017.
This follows its first Melbourne land purchase in two years in March - the $33 million acquisition of a 42-hectare site in Clyde in the city's southeast growth corridor - and ties in with the Queensland-based group's plan to diversify its development into a 20/40/40 split across NSW, Victoria and Queensland.
The group also raised $80 million early this year, to continue its five- to six-year land restocking program. In March, investors showed support for the company's plans by oversubscribing to the $20 million share placement capital raising. The rest of the funds were raised through a separate non-underwritten $10 million share purchase plan and a $50 million bond offer.
Villa World's Managing Director Craig Treasure said the latest acquisition was in line with the company′s objective to grow its holdings in Victoria to match that of its Queensland holdings.
"Our growing pipeline supports our target of continuing to achieve cumulative average earnings per share growth of greater than 10 per cent per annum," Mr Treasure said.
Villa World's previous Melbourne acquisition was in 2014 when it bought a 270-hectare land parcel in Donnybrook for $22.8 million in partnership with CVC Limited.
Most of Villa World's land estates are in Queensland. Earlier this month, it kicked off a $300 million residential project on one of the last remaining land parcels on the central Gold Coast in Arundel Springs.
The developer returned to Sydney earlier this year, after leaving in 2008, and will join the campaign to resolve Sydney's affordability issues by offering three-bedroom houses for around $600,000. The median house price in Sydney is just over $1 million.
The company has several projects on the go in Sydney including the "Concourse" project in new town centre Oran Park, 60 kilometres southwest of the Sydney CBD and the 44-home "North at Box Hill" project in Sydney's northwest.
In Oran Park, Villa World is developing houses under a development contract with landowner, billionaire Tony Perich's Greenfields Development Compan