In response to recent media coverage, ASF Consortium further explains the ASF Consortium make up, financial capacity to deliver the Gold Coast Integrated Resort and ASF Group’s company strategy:
ASF Consortium capacity to deliver the Gold Coast Integrated Resort:
We emphasise that the Gold Coast Integrated Resort project will be delivered by ASF Consortium, not ASF Group.
ASF Consortium was formed in 2013 to respond to the State Government’s global tender for an Integrated Resort Development (IRD). Due to the large size and scale of the project, the Consortium at the time comprised of China State Construction Engineering Company (CSCEC) and CCCC Guangzhou Dredging Co Limited, a subsidiary of China Communications Construction Company Ltd (CCCC), the owner of John Holland Group. Both are Global Fortune 500 companies with a combined balance sheet of more than $80 billion and capable to deliver the entire project each on its own.
In 2014, ASF Consortium was selected as the preferred proponent to develop the Gold Coast Integrated Resort.
In August 2015, the State Government signed a probity and process deed with ASF Consortium to continue through the State IRD process on a much smaller 5.5 hectare site south of Seaworld.
In June 2016, ASF Consortium submitted a Preliminary Detailed Proposal (PDP) to the State which included CSCEC as a commercial partner. CSCEC’s market cap is more than double any of Australia’s developers or contractors and had an annual profit in FY15 of nearly $10 billion. The PDP was assessed by the State and the Consortium progressed to the next stage of the IRD process.
Now on a smaller site and without dredging or land reclamation needs, ASF Consortium will be further defined as part of the final Request for Detailed Proposal phase later this year. It is expected that the Consortium members will include ASF Group, China State Construction Engineering Company, a Tier 1 casino operator, and at least one other Cornerstone Entity. Further commercial details information is, was, and will be, submitted to the State Government as “Commercial in Confidence” and therefore is not for the public domain.
ASF Group Half Year Audit:
ASF Group (ASF) has been a publicly listed entity for over a decade and focuses on investment opportunities which have synergy between Australia and China. The Company recently expanded into Europe and are shortlisted for a major project in London, partnering China State Construction Engineering Company (CSCEC) and Lend Lease, a strategic delivery partner.
The Company strategy is to identify and develop projects through joint ventures and strategic investments with the goal of maximising shareholder value for the long run.
With offices in Sydney, Brisbane, Hong Kong and London, ASF has developed a key network of major Chinese resource, property, trading and strategic investment partners ranging from High Net Worth Individuals (HNWI) to State Owned Enterprises (SOE).
ASF doesn’t manage to a Profit & Loss Statement (P&L) but rather diligently manages a lean and conservative Balance Sheet. The Company’s approach has always been to not retain large cash balances in the Company but rather have available funding to further projects as needed raised via equity or convertible notes.
To that effect, ASF has a spotless track record of raising capital from its networks in its 11-year history.
The half-year audit is a point in time reflection of our activities. Any given year, the Company can be up or down based on what assets have been transacted on and what projects are in the pipeline.
This year is no different. The Company is project heavy which is extremely positive. This is business as usual for ASF.