Queensland-based developer, Villa World (ASX:VLW)
, has announced it has reached an in-principle settlement agreement with the parties in the Silverstone litigation.
This case arose out of alleged building defects found in a Tweed Heads apartment block, called Silverstone, which was completed in 2009. Villa World was the developer and registered builder.
The company has not revealed the amount of its contribution to the proposed settlement, but says it is not materially different from provisions that it made in financial statements as at 30 June 2016.
Looking at the company’s FY16 statements, it allocated $1.9 million for ‘legacy litigation issues’ (and in the FY year before that, it was $8.9 million). In addition, the company raised an additional $2.8 million for 2H16 – specifically for the Silverstone litigation.
Villa World reported a net profit of $33.7 million at 30 June 2016.