Thank you for standing by, and welcome to the Elanor Investors Group, ENN Investor Briefing. I would now like to hand the conference over to Mr. Ian Mackie, Chairman. Please go ahead.
Good morning, and thank you for joining today's market update. My name is Ian Mackie, and I'm the chairman of Elanor Investors Group. With me today is Tony Fehon, our recently appointed interim managing director. I'd like to start by acknowledging that this has indeed been a challenging time, and I thank you for your patience as we have navigated through some significant changes. This market update has been scheduled to provide further color on what we announced yesterday and the actions we are taking to strengthen the ENN balance sheet and simplify the business. Our 4E has not been lodged with the ASX as yet. We are unable to take questions today. You will have an opportunity to do so at our investor update, currently scheduled for 30 September 2024.
Yesterday, we announced significant changes that will see ENN become a capital-light and simplified business. We have done this to ensure we're able to navigate the prevailing property market conditions in an orderly and planned way. The board believes that these measures will ensure the group is optimally placed to deliver strong fund and security performance over the long term. A number of key management changes were also announced to ensure an orderly leadership transition to support the strategy execution. The company and the broader operating environment has changed, and as we enter this new and pivotal chapter, Glenn has made the decision that the timing is right for him to retire. Tony Fehon, who has been on the board of Elanor for the past five years and involved in the development of the refocused strategy, has been appointed Interim Managing Director.
Tony has the board's full confidence to lead the company through this transition phase. He has extensive experience in operational and leadership roles in the real estate and funds management sector, including as an executive director at Macquarie Bank. He has the right leadership skills, operational experience, and understanding of our business to steer the company through this phase, while providing the necessary leadership continuity, so the team can stay focused on managing assets and delivering investment returns. The board will commence a search for a new CEO once the group is further advanced in the execution of a stabilization strategy. Additionally, after ten years with the business, Paul Sarter has also announced his retirement from his role as the group's Chief Operating Officer, effective immediately. Appropriate succession arrangements will be made for this role.
These leadership changes are effective immediately. It will ensure strong leadership of the group through this transition period and will support the execution of the group's long-term vision. While our Appendix 4E has not been lodged with the ASX as yet, you will have seen some key metrics from yesterday's announcements, such as assets under management of approximately AUD 6 billion as at 30 June 2024, versus AUD 3 billion at 30 June 2023. Preliminary FY 2024 recurring funds management income of approximately AUD 49 million, representing a 44% increase on FY 2023. Base recurring management fees increased by 73% to approximately AUD 40 million for the year. Preliminary FY 2024 funds management EBITDA of approximately AUD 12.5 billion, and FY 2023 was AUD 1.7 billion. We are continuing to assess a range of capital management initiatives.
In parallel, we are progressing with the audit and finalization of our FY twenty-four financials in conjunction with PwC. We are engaging with the ASX in respect of the reinstatement of the quotation of our securities, which will follow the release of our Appendix 4E. Our audited FY twenty-four financial results are expected to be available by 30 September 2024. Finally, I want to assure you that the board is actively involved in the strategy execution, and we remain very focused on delivering value for our security holders. We believe these changes are the right ones for the business and are confident that it will set us up for future success. Thank you, and I will now hand over to Tony Fehon to provide further details with regards to our strategy going forward.
Thank you, Ian. Thank you, Chairman, and thank you to the board for giving me the opportunity to lead ENN through this transition phase. As the chair has outlined, yesterday, we announced some comprehensive changes to our business. Let me start by taking you through what we are doing to strengthen the balance sheet. With more than AUD 140 million in net tangible assets, the reorganization of the balance sheet will bring stability to the day-to-day operations of the business. Immediate action has been taken to reduce balance sheet gearing through the sale of Elanor's stake in the Elanor Commercial Property Fund to Lederer Group. The Lederer Group were a small investor in ECF, and with a similar outlook on the office market and a belief in the capability of our team, it was a strategic opportunity to sell our stake to them.
And continue to build on a shared vision for the fund. Furthermore, an orderly sale program of our out hotel assets is well underway, and given the level of interest expressed in the portfolio or on individual asset sales, we remain confident that this sale is in the best interest of our fund investors. Other asset sales are well progressed in relation to certain Elanor managed funds. After the sale of these assets, Elanor will still have more than AUD 5 billion in funds under management. Let me take you through the ECF deal announced yesterday. The sale to Lederer was a deal struck at the right time and with the right party for the fund. Elanor has sold its 12.6% interest in ECF via an off-market sale to the Lederer Group for approximately AUD 23.9 million.
This represented a sale price of AUD 0.60 per ECF security. Proceeds from this sale will be used to reduce the group's senior secured, fully revolving debt facility by AUD 15 million and for working capital requirements. Settlement of the sale of ECF securities is due on the 13th of September, 2024. Importantly, we will remain as the responsible entity and the manager of ECF. We have additional plans to execute on our previously announced capital-light funds management strategy, and part of this is to pay down our debt to retain flexibility in our future. We have agreed with our senior secured financier to undertake other capital management initiatives to raise funds of at least AUD 15 million by the 31st of October in 2024, and to reduce the senior revolving debt by a further AUD 10 million prior to the 15th of November, 2024.
Getting this facility below AUD 50 million will open up further flexibility in the future. Citigroup Global Markets has been appointed to assist in exploring appropriate capital management initiatives, and in parallel, Moelis has been appointed to explore debt financing opportunity options. Elanor will continue to assess financing options to strengthen the group's balance sheet and provide the most flexible financing terms to support the group's strategic initiatives. In May 2024, investors in the Elanor Property Income Fund, which we call EPIF, approved the orderly realization of assets and return of capital. EPIF's divestment strategy is well advanced, with Glenorchy Plaza sold and two of the three remaining assets in exclusive due diligence. All assets are expected to be divested this year.
Furthermore, we have commenced the strategic divestment of the hotel assets within the Elanor Hotel Accommodation Fund, or EHAF, with the proceeds to reduce the fund's debt and return capital to EHAF investors. Asset realization programs are also in progress for several single-asset retail managed funds, including Bluewater Square and Belconnen Markets. All these planned asset realizations are expected to release well in excess of AUD 100 million of Elanor's balance sheet capital over the next eighteen months. Net gearing for the group will be substantially reduced following execution of these initiatives. With the divestment of fund assets in the hotel, tourism, and leisure sector, we are simplifying our funds management platform to focus on the core real estate sectors of retail, office, healthcare, and industrial.
This divestment program has already commenced and is planned to be substantially completed by 30 June 2025, and I would like to stress that any asset sales will be assessed on their own merit and what is in the best interest of investors in our funds and for our broader stakeholder partners. As I said earlier, this orderly divestment of assets will strengthen our balance sheet and provide the foundation for a capital light and simplified business. Now, following the integration of the Challenger and ADIC real estate funds management mandates, the group is continuing a range of cost management initiatives to further grow the profitability of the funds management platform.
In addition to these actions being taken, we will continue to assess any approaches that are being made by third parties, and any decision to progress discussions will be made on the basis that is in the best interest of our security holders. While we remain in discussion with a number of parties, there's currently no assurance that a particular outcome will eventuate. We have appointed Citigroup Global Markets and King & Wood Mallesons to advise us on these issues. We will continue to keep the market informed in accordance with with our ongoing continuous disclosure obligations.
No action is currently required by Elanor security holders. In conclusion, and as the Chair mentioned, we are seeking to come out of trading suspension at the appropriate time following the lodgment of our Appendix 4E. My focus right now is to execute this strategy to ensure the group is well-positioned to deliver strong fund and security holder performance over the long term. Thank you for joining today's call, and we look forward to holding a detailed briefing on our audited results when they are released. Thank you.
That does conclude our conference for today. Thank you for participating. You may now disconnect.