World Class Global to recognise A$147m in property sales proceeds

SINGAPORE-HEADQUARTERED property group World Class Global (WCG) expects to recognise A$147.3 million (S$150.1 million) in sales proceeds from the first phase handover of its Australia 108 skyscraper residence in Melbourne, subject to the settlement by purchasers of 277 completed residential units in the development.

These are expected to contribute positively to its financial performance in the second and third quarter of its financial year for 2018 ending Dec 31, barring unforseen volatility in the Australian dollar/Singapore dollar exchange rate, it said in an SGX announcement.

The 101-storey freehold building is located in Melbourne's Southbank close to National Gallery of Victoria and Crown Casino.

The group expects to recognise over A$251.1 million in revenue from the first phase handovers of Australia 108 as well as AVANT, another Melbourne development. To date, AVANT's first-phase handover in February 2018 contributed A$78.4 million in recognised revenue for WCG in its first quarter.

"We are very pleased with the solid progress we have made in delivering the first-phase handovers of two landmark development projects, which are set to transform the Melbourne city skyline," David Ng, executive director and chief executive officer of WCG, said. "Buyer demand for our Australia 108 and AVANT developments continues to be robust, which attests to the healthiness of Melbourne's property market and WCG's ability to deliver high-quality projects that appeal to our target market."

The aggregate sales value from the sale of pre-sold apartment units in Australia 108, AVANT and Nova City in Cairns is estimated to be about A$1.1 billion. WCG has two other residential property development projects in Australia which are yet to be launched, and holds some land parcels in Penang which comprise mainly shophouses.

World Class Global last closed on May 31 at S$0.24.