World Class Global set to reduce debt by A$215 million on development proceeds

Australian notes and coins

World Class Global, or WCG, said on Monday that it planned to reduce its debt profile by A$215 million after recording revenue of A$383 million from buyers at its two Melbourne, Australia, residential projects.

So far, debts totaling A$135 million and A$60 million have been repaid for the AVANT and Australia 108 projects respectively, it said, with another A$20 million related to Australia 108 expected to be paid by the end of the third quarter, WCG said.

The freehold 56-storey residential skyscraper AVANT has sold 443 residential units, or more than 97 percent of the total 456 units, WCG said i a filing to SGX after the market close on Monday.

Buyers have made settlements for 401 residential units, for A$231 million in revenue, with another 42 units expected to be settled by buyers, generating another A$27 million, for A$258 million in revenue in total, it said. After repaying outstanding loans of A$135 million, net cash flow of around A$123 million was expected, it said.

The 101-storey residential tower Australia 108, which is expected to be completed in the first half of 2020, has sold 1,073 residential units, or more than 97 percent of the 1,103 units, it said.

So far, buyers have made settlements for 278 residential units, amounting to A$152 million in revenue, with another A$103 million expected, it said.

“We are pleased with the progress we have made so far in buyers’ settlements for their purchases of residential units of AVANT and Australia 108,” David Ng, executive director and CEO of WCG, said in the statement. “The proceeds from these settlements have enabled us to significantly improve our debt profile and reaffirm our strong company fundamentals.”

Get the Shenton Wire morning briefing in your inbox