Gold Coast-based developer Villa World has formed a joint venture with China-focused property marketing company Ausin Group to deliver a residential community in Rochedale, on Brisbane's southside.
Villa World had previously purchased a number of land parcels in Rochedale to form an 8.7 hectare site which it planned to develop as a land-only offering.
As part of a joint venture arrangement with Ausin Rochedale Pty Ltd, Villa World will instead build the 148 homes planned for the site, to be offered under traditional progress-payment contracts.
When the company had intended the development to be marketed as a land only community it was aiming at a price point of $395,000.
The development will now be marketed by the joint venture as a premium price point house and land community, starting at $650,000.
These premium houses will be built exclusively by the company under the capital efficient split contract method where the buyer progressively pays for the house build.
In undertaking the land component of the development, the joint venturers are to contribute equal capital contributions, share profits on a 50/50 basis and utilise external funding on a 50/50 several liability basis.
Villa World Managing Director and Chief Executive Officer Craig Treasure said the Rochedale joint venture was in line with the company's growth strategy of pursuing alliances to maximise project outcomes and return on equity, as well as making new capital acquisitions in targeted high-growth areas.
"We are constantly scanning for new opportunities to develop strong and valuable partnerships with key industry stakeholders, as well as working to strengthen our existing relationships," Mr Treasure said.
Ausin Group, which recently added Brisbane to its 12 other capital city offices in Australia and Asia, is one of the largest privately-owned companies providing property and financial services advice to both Australian and Asia Pacific markets.
Ausin is the leading partner for several major Australian developers. The Rochedale joint venture is its first arrangement with Villa World and among its first major residential projects in Brisbane.
Ausin Group (Wealth Management) Director, Peter Dedes said: “Brisbane’s accessibility to quality universities, major employment hubs and its clean lifestyle with an abundance of open spaces were major drivers for customers to purchase in Brisbane.”
The Rochedale joint venture arrangement for the land component also includes the appointment of Ausin's property division as the selling agent.
As well as tapping into Ausin's domestic and international sales channels, the arrangement will free up a significant amount of capital for Villa World, with the joint venturers securing project specific funding and contributing equally to development costs and splitting the profits.
Mr Treasure said: "Villa World will also gain revenue from development management fees and house construction profits which we can then direct into replenishing our project pipeline as we continue our growth."