Villaescusa walked into the British woman's room about 3pm and told her: "I have to have sex with you, you must have sex with me" before allegedly sexually assaulting her, prosecutor Katharine Jeffreys told the Downing Centre District Court on Monday.
Villaescusa has pleaded not guilty to sexual assault, reckless wounding, indecent assault, assault occasioning actual bodily harm and attempted murder and is facing a judge-alone trial.
Jeffreys said after Villaescusa sexually assaulted the woman he took a chef's knife from the kitchen and sliced the webbing between her first finger and thumb so deep it exposed the muscle. He then forced her into his bedroom and held her down with one hand while he masturbated with his other hand.
The court heard the woman then went into the kitchen to get ice for her injured hand and went into the bedroom of their other housemate, Leon Bajard, from France.
"The accused, armed with kitchen knife, forced his way into the bedroom of Mr Bajard," Jeffreys said.
The two men wrestled and Bajard received cuts to his hand and fingers from the knife.
At that point, the British woman tried to escape. "[She] tried to leave the bedroom but was put on the floor and stabbed three times with the knife," said Jeffreys.
One wound hit a facial nerve and narrowly missed a major blood vessel and the other struck her in the armpit. The third wound was at the back of her neck.
This was when, Jeffreys told the court, he said: "I have to have sex with her or I have to kill her."
The British woman managed to grab the knife from him and run towards the front door.
When Villaescusa caught up with her she stabbed him in the chest "and made her escape".
Villaescusa was then taken to St Vincent's Hospital where he was treated for his injuries and was observed "displaying symptoms of psychosis".
Jeffrey said it was the first psychotic episode Villaescusa had experienced. "It had developed over a period of a few weeks and in the context of cannabis use."
She told Acting Judge Gregory Hosking the facts of the case had been agreed and the only witnesses that would be called during the three-day trial would be psychiatrists who would give evidence on whether Villaescusa's psychotic state affected "his actions and his reasoning".
"The key issue in this case is that the medical evidence amounts to a defence of mental illness."
A short video was played to the court that showed the inside of the Cleveland St flat.
Detectives found a small amount of cannabis and there were bloodstains on Villaescusa's mattress.
Blood could also be seen smeared on Bajard's bedroom door and the British woman's mobile phone was found on the bedroom floor.
- news.com.au