Gold Coast Developer Villa World is stepping up its investment in the aged care business.

Speaking at the company's annual meeting yesterday, chief executive Brent Hailey said the company, which expects a 25 per cent drop in profit in 2005-06 to about $20 million, was entering an 'exciting expansionary phase' for its aged care assets.

He said the company expected to have 500 beds by 2008.

Villa World, which on Wednesday announced that it was likely to join the Raptis Group to transform the Dolphin Arcade with a $220 million, 398 apartment tower project is involved in the aged care industry through its 70 per cent stake in the Guardian Group.

Mr Hailey said the company's operating facilities at Burpengary and Morayfield were performing in line with expectations, while a 20 bed expansion at Abbey Gardens was nearing completion.

"We are now underway with an exciting expansionary phase, as we develop three new facilities over the next two calendar years," said Mr Hailey. "These comprise a new 90 bed facility at Carseldine which is already under construction."

"We are also applying for additional licences in this year's ACAR (Aged Care Allocation Round from the Department of Health and Ageing) with a view of expanding this facility to 120 beds."

"At Calamvale, we are finalising development approvals to enable us to commence construction of this facility."

"It will initially be a 90 bed facility, but again we are applying for additional licences in order to expand this facility to 120 beds."

"Our third development opportunity is at Browns Plains. We were granted 113 licences in the 2004 ACAR and have lodged a development application for a 120 bed facility on this site."

However, Villa World chairman John Humphrey said the company's core business, residential estates and homes, was likely to suffer this financial year.

"Last year I said that we thought that the 2005 year would be a little less favourable than the preceding year and I think that was the case, which makes our result a good one," said Mr Humphrey.

He said the company was so far performing ahead of budget and was more bullish about 2007.

Copyright: Gold Coast Bulletin 2005.

Source: Gold Coast Bulletin, FRIDAY 04 NOVEMBER 2005.