World Class Global announced that it has recorded A$156.8 million in total revenue from the first phase handovers of AVANT and Australia 108 in 1H 2018. Total revenue recognised from the handovers of both projects is expected to have a positive material impact on WCG’s financial performance in the first half of 2018.
On 9 March 2018, World Class Global began the settlement process for the first phase handover of AVANT. As at 30 June 2018, the purchase settlements for 195 units were successfully completed, representing over 96% of the 203 completed residential units, which amounted to A$101.0 million in recognised revenue for the Group. AVANT is expected to be completed with the final handover of the remaining 250 units in the second half of 2018, which is expected to yield up to another A$157.6 million in revenue that will be progressively recognised, subject to actual settlements.
On 7 June 2018, notice of settlement was issued by World Class Global to purchasers in the first phase handover of Australia 108. As at 30 June 2018, 108 residential units had been successfully settled by purchasers, representing over 38% of the 277 completed residential units, which amounted to A$55.8 million in recognised revenue for the Group. Between July 2018 and October 2018, the Group expects to begin the second phase handover of 191 residential units with sales totalling A$112.0 million which will be progressively recognised, subject to actual settlements.
On a collective basis, between July 2018 and October 2018, the remaining settlement from earlier phases of AVANT and Australia 108, as well as the final handover of AVANT and the second phase handover of Australia 108 that are coming up, are expected to generate additional A$361.3 million in revenue for the Group, subject to actual settlements.
Mr. David Ng, Executive Director and CEO of World Class Global, said, “The strong settlements from the first phase handovers of AVANT and Australia 108 is a firm indication of the overall health of Melbourne’s property market and is reflective of the continued robust demand for high-quality, residential projects in one of the most liveable cities in the world. We are pleased to be able to complete the settlement process from the handover of both developments in such a short span of time.”
In Australia, World Class Global currently has property development projects in Melbourne, Cairns and Brisbane. As at the time of this news release, the aggregate sales value from the sale of pre-sold residential units in Australia 108 (Melbourne), AVANT (Melbourne) and Nova City (Cairns) is estimated to be about A$1.0 billion. World Class Global has two other residential property development projects in Australia which are yet to be launched.