SINGAPORE (July 3): Living above the clouds has lots of appeal, going by how nearly all of the apartments at a 319m-tall skyscraper in the middle of Melbourne have been sold. In 2015, a penthouse on the 100th storey of Australia 108, as the tower on Southbank Boulevard is called, sold for A$25 million. More recently, two remaining penthouse units on the 97th storey were being marketed here by List Sotheby’s International Realty, Singapore for A$12 million ($12.7 million) each.
The developer of Australia 108 is World Class Global, a company that was recently listed on Catalist. At its IPO, shares in WCG were sold at 26 cents each, which was more than twice the company’s net asset value (NAV) of 11.4 cents a share. Interestingly, while the company has three property development projects in Australia underway, it has not posted any revenue for the last three financial years. For FY2016, it reported a loss of $6.3 million. Still, the stock climbed as much as 7.7% above its IPO price when trading began on June 15. It closed on June 29 at 26 cents.
According to WCG’s listing prospectus, it has recorded pre-sales worth some A$1.2 billion. Buyers of the properties it is developing have only put up an initial deposit, and are due to pay the balance only when they collect their keys. At end-2016, WCG had some A$124.6 million in deposits in an escrow fund.