Good morning, ladies and gentlemen. Welcome to the Far East Consortium International Limited 2024 Annual Results Presentation. Before we begin, let me introduce the management representatives. They are Joint Managing Director and Executive Director, Ms. Wendy Chiu, Chief Financial Officer and Company Secretary, Mr. Boswell Cheung. Now, may I invite Mr. Cheung to start the presentation? Mr. Cheung, please.
Thank you. Thank you very much. Thanks for coming to Financial Year 2024 Annual Result Briefing today. Yesterday night, we have announced our results. So welcome, welcome, and thanks for your all support.
The key theme of this financial year is talking about the revenue, also the strong performance in the property development, and also the recurring income business as well. The revenue growth by 57% to HKD 10.2 billion. In terms of the adjusted cash profit, increased by 35% to HKD 780 million. Property development, which is a great growth. The revenue for the property development was talking about HKD 6.8 billion and increased almost double, 91%, compared with last year.
The cumulative pre-sale value and also the unbooked contracted sales reached HKD 11.5 billion, which is some projects we have resolved and in partly well. All these 11.5% as of end of March will be coming into our pockets, as well as the settlement of the bank loan as well. So again, we believe that that will further enhance our gearing ratio and also debt level as well.
Hotel, with two new hotels opening, which is talking about The Ritz-Carlton, Melbourne and also Dorsett Melbourne, almost a year ago. Yeah, and it gives very strong support to the revenue as well. So the revenue grows to HKD 2 billion for the financial year. And last year, it was HKD 1.5 billion. Car park, gaming, very stable, steady growth. Car park, on the face of the P&L, slightly decreased 3% to HKD 732 million. But in fact, if you look at the original currency, which is a slightly growth. The reason of this kind of decrease is actually due to the exchange movement.
So from my point of view, it's actually steady growth. It's just the exchange movement, which we cannot control. The gaming as well, steady growth, and in particular, Palasino was listed in Hong Kong Stock Exchange at the end of March. Strong performance in the property business, property development business. Gross profit margin increased to 25%, compared with last year 19%. Strong settlement in this financial year, major contribution from the West Side Place stage two in Melbourne.
In fact, other than Melbourne, also we have the very good revenue recognition in Singapore as well, which is talking about SGD 1.8 billion from one project, Hyll on Holland Singapore in the village, I mean, the Hyll on Holland village, which is a very good region. Other than that, also we have Hornsey Town Hall in London, New Cross Central Meadowside in Manchester.
Also help us, yeah, as well as Hong Kong, honestly, for the increase of the revenue in this property development. Like I said, well, Hyll on Holland and also Waterfront Subang Joint Venture in Malaysia, which gives us the recognized revenue over time as well. Performing very well in the recurring business. Recurring income, I mean, recurring revenue growth 17% to HKD 3.2 billion, like I said, of which HKD 2 billion is actually from hotel business.
Hotel performed well with the improvement in overall occupancy as well as the RevPAR. In fact, the revenue as well. New opening, like I said, well, The Ritz-Carlton, Melbourne and also Dorsett Melbourne, altogether is talking about almost 600 new rooms. Maybe we talk about that later on. Well, although once, well, every hotel may be the same, is that, well, we need about six or a few months to ramp up.
So that would be the norm. And almost in terms of the financial year, almost end of the last two quarters or the last quarter, actually, the new hotel picking up a lot as well in terms of the revenue and also the RevPAR. Car park business, we try to phase out some underperforming car parks and also secure some additional management contracts. Palasino, like I said, was delivered very stable and resilient performance. BC, the total AUM maintained at AUD 5.4 billion at the end of March. This is not a small business, but, well, this is not our core business. So we are considering to look for some fundraising or this kind of realization of the value exercise.
On the other hand, well, it successfully issued three RMBS during the year, totaling AUD 1.5 billion in aggregate. After year end, we also have one RMBS issue. The net interest margin was 1.2%. Slightly decreased because of the increase in the interest rate and also some time lag in effect on customer borrowing rates. Implemented some initiatives to lower gearing and interest.
Well, I think this is the main theme as well since last interim, yeah, interim during this financial year, 2024. Approximately, well, in May, approximately HKD 1 billion paid. I mean, this is one of the bonds at the moment. And then in January this year, we also paid down another bond, which is HKD 2.8 billion. Completion of the disposal of the office component in Kai Tak Development. Well, I think back to 2019, we won a tender from Hong Kong government for a piece of land that, well, we built up the office building and also another building for the hotel.
This office building, we sold out. We completed the transaction end of March this year. So we booked the gain, get the cash, reduce the bank balance, I mean, the bank debts as well. So it helped a lot on the gearing as well. Also, we completed, like I said, well, before we completed the West Side Place stage two in Melbourne, recognized the HKD 3.5 billion revenue and that, well, again, helped the gearing as well.
That is the stage two. But in fact, we also completed during the financial year stage one as well, which is talking about HKD 500 million. On and off, I think from Australia, we paid down a lot of debt since a lot of projects coming up. Continued sales of some non-core assets. Like in November last year, we sold the, which is a JV, honestly.
Well, we sold Sheraton Mirage in Gold Coast, and also we sold a car park in New Zealand and the remaining units in Bukit Bintang, KL, with a sales process in aggregate talking about HKD 1.2 billion. Unlocking some values through strategic long-term planning. I think before we have touched on the spinning of the hotel REITs, I think it's time to reinstate and re-explore the opportunity. Yeah. Also, for the BC, we are reviewing the capital raise option at BC Invest.
Top line, I think we covered some of them. Some one-off expenses like the listing fee, listing expenses of the Palasino we booked it and also some, well, the hotel pre-opening expenses. But from our book, it's actually not a big amount. But on the other hand, one-off compensation of last year, one-off compensation income of last year, which will not be happening again, right, for this financial year.
Interest rate rise, increasing of the commission, marketing expenses hit a lot of our P&L. In fact, well, I just also highlight in this page the finance cost, HKD 1.2 billion, almost double, hitting a lot of our profit. So we are trying hard to sell down some non-core in particular in order to reduce our debt level. I think it shows that, well, later on, we have a page talking about the gearing rate as well. I think we spent a lot of effort, spent a lot of resources for this target.
I think it's successful, which we may talk about later on. The selling expenses jump more than double even. The reason is that, well, from the revenue, HKD 10.2 billion, in which HKD 6.8 billion was the sales of property. Of course, sell more, pay more in commission. I think that is in line, actually. Yeah. The dividend.
Yesterday, we had the board meeting and proposed HKD 0.10 for the final dividend, together with the interim of HKD 0.04; altogether for the whole year, which is HKD 0.14 and same as last year. We also want to thank the shareholder for the support and show that, well, we want to maintain the dividend policy. We look forward; well, the dividend ratio will be favorable. Yeah.
Cumulative pre-sale value and unbooked contracted sales, HKD 11.5 billion. NAV is attributable to shareholders, HKD 30 billion. Per share, HKD 10, almost HKD 11. I think that's in particular on the pre-sale and unbooked contracted sales. That will be helping a lot on the visibility of our cash flow.
This page, I would like to show that in fact, we have, well, in our pipeline, we have HKD 65 billion on our pipeline, including the HKD 11.5 billion, which I just mentioned, the pre-sale value and also the unbooked contracted sales. On the left-hand side of this box, I think in financial year 2025, we are, well, our financial year end is end of March. So today, it's actually financial year 2025, right?
So during the year, well, in terms of the project completion, the GDV is talking about HKD 9.2 billion, of which HKD 6 billion has been resolved as of end of March. Of course, April, May, June, we keep on selling, right? So HKD 6 billion is expected to be completed this year. So that will be helping a lot on our booking, the revenue recognition, and the cash flow as well for this financial year.
Another page, which is talking about the cash flow as well. Gross profit, we looked at that, well, for the current financial year, I mean, not current, the financial year 2024, the overall gross profit margin talking about 31%, compared with last year, almost the same, in which you can note that the property development increased a lot from 19% last year to 25% this year.
Overall, in terms of the gross profit margin and, well, because of the increase in the revenue, last year, I mean, the gross profit amount was talking about almost HKD 2 billion. But this year, 2024, increased about HKD 1.2 billion to HKD 3.2 billion. I think it shows that, well, FEC has built up a foundation or infrastructure that we are able to deliver sales of property and also the recurring business to reach, obviously, HKD 10 billion revenue company.
This page, well, we are quite diversified in terms of the location, well, but we focus on our business. The business talking about the sales of property, hotel mainly in the recurring business. Also, we have car park, gaming, entertainment business. A lot of bond holder, equity holder are worried about the impact on the forex. This page, I want to show that, well, yes, of course, we are diversified. Of course, we have the impact. But let's say, assuming the exchange rate remained constant unchanged, net asset value, what is the impact?
If everything unchanged, I mean, the exchange rate unchanged, the net asset value will increase HKD 452 million. In terms of the P&L, profit will increase HKD 47 million. I think, well, this is, well, personal point of view, this is not a big impact. So I think the reason is that we are quite diversified.
So we established a cushion to absorb any impact from that end, but we have another end in terms of the favorable. This page, a lot of people are asking this page. So we dispose some non-core development coming into completion. It shows the liquidity and balance sheet position as well. Last financial year to 2023, the current liability within a year, talking about HKD 21 billion. But this year, 2024, we improved a lot and reached almost HKD 13.13 billion.
I think, well, in particular, we have a page talking about this current liability. So let's talk about it later on. So in terms of the total bank loan, we improved about HKD 4.5 billion in a year to HKD 27 billion. The net debts, we decreased about HKD 3 billion to HKD 22 billion.
The total equity, which is HKD 33 billion, mainly due to two reasons, the exchange movement and also some of the hotel revaluation change. So you can see, well, from an adjusted net gearing ratio perspective, last year, it was 74%. This year, we noted 68%. So it dropped about 6%. Net leverage ratio, which is talking about the net debts over the adjusted total assets, 35% around, very stable. And due to this year, we have, I mean, we have a Palasino listed in Hong Kong.
So as of end of March, the market value of the Palasino, of our own shares, right, compared with the cost that we own, we noted a premium. So when we put back to the balance sheet, we noted the net gearing ratio will further increase. I mean, we further reduced to about 63% as well.
So I think it helped a lot on our, I mean, demonstrating that, well, the shareholder value and also the strong balance sheet in terms of the gearing ratio. Just now, like I said, we would like to have a page talking about this short-term liability, current liability.
Well, as at end of March, we still have HKD 12 billion short-term liability, in which we show a breakdown. Corporate secure, mainly on the corporate hotel, car park, which is talking about HKD 4.4 billion. I think we are looking for some of them will be paid down, and most of them, I think, will be looking for refinancing. Honestly, in particular, for the hotel and also car park assets, I think the hard time has been over. Nowadays, in particular, well, a lot of merchant banks here, right?
So I think your advertising and all that actually improved a lot on the hotel asset in particular. So I think when I come to you talking about this refinancing, don't say any hard time, difficult time. Okay, please help and support. Property development, which is talking about the project loan. Once we completed, paid down the loan, get the cash back. So this depends on the completion, right?
So it's, of course, very, very much manageable. Corporate loan, a lot of banks worry about this because this is unsecured, which is talking about HKD 4 billion, HKD 4.3 billion. In fact, this HKD 4.3 billion is at end of March. April, May, June, now almost 3 months. We have paid down HKD 1.1 billion already. So the remaining HKD 3 billion will be coming to be refinanced or will be paid down. Loans with repayment schedule, I think, is ongoing payment.
Demand clause is academic. Some of the bank loan, in particular, for some old bank loan, they have, well, for example, 3-year bank loan, 5-year bank loan, but they have a clause in that where this is a demand clause. So according to the accounting standard, we have to pay because there is, even though this is 3-year bank loan, more than 1-year bank loan, but there is a clause, demand clause anytime.
So we have to classify as a current liability. In fact, we never counter a demand clause for the, I mean, the core from this amount, I mean, from this classification. Page 13. This is what we are going to do in order to reduce the level. We focus on monetizing the existing development. Like I said, well, the inventory talking about HKD 6.1 billion as of end of March.
In fact, only as at end of March, well, during this financial year 2025, we have noted, well, the pre-sale, the contracted sales, I should say, because this is all completed stock. Mount Arcadia in Hong Kong, Manor Parc in Hong Kong, in aggregate, HKD 1.3 billion will be scheduled to complete this year, this current financial year. And some other several major project reaching completion and also settlement stage.
Aspen, this project is a mixed-use development. It consists of 502 apartments, in which we sold half already. So I think we are, during the year, we'll be receiving almost HKD 2 billion plus Hong Kong dollar. Hyll on Holland, in fact, we have issued the handover notice two, three weeks ago. And in fact, it's starting to be handover as well. The bank loan has been paid off already a few days ago.
In fact, the cash flow coming back on our pocket. So we keep on selling this, I mean, completing this property development. Actively selling the non-core assets, car park, hotel, earmark. Also, we have, well, this is, I think we have the announcement as well in May. We are entering into a contract to sell the car park in Boundary Farm in Manchester, which is talking about GBP 17 million. And we are expecting to be completed in end of August, hopefully.
And we also considered to dispose our Changzhou Gongyu, Long Lease Residential Development in Baoshan, Shanghai. And yeah, upcoming launch, there will be Falcon. Falcon, we launched the project, which is talking about 189 units in late March. Around three months now, we sold out 50% already. We have pre-sold 50% already. I think we will be giving on this kind of launch.
In fact, overseas sales of, I mean, in terms of the sales of property, everywhere booming, honestly, except Hong Kong and China. But in fact, we don't have much in China. Expected to launch as well, THE PAVILIA FOREST in Hong Kong, Pak Wai Sum, and also 640 Bourke Street in Melbourne. I think we will be launching these two projects soon in the coming few months.
The GDV as a whole, talking about HKD 10.4 billion. And also, we are expecting the completion and we'll be opening the Queen’s Wharf Brisbane, second half of this year, which will be giving us more further stable income and cash flow as well. Page 14, well, that is what we have in our pocket.
Liquidity level, which is talking about HKD 4.9 billion, including cash, bank, investment securities, and all the underwriting facility for corporate use and also the construction development, which is talking about HKD 5 billion. So altogether, around HKD 10 billion. And unencumbered asset, or hotel asset, HKD 4 billion. And the market value is talking about HKD 500 million plus. And unsold inventory, HKD 6 billion. And also, we have some capital commitment, which is talking about hotel and some other investment property, which is talking about HKD 1 billion. In fact, most of the projects are coming into quite final stage.
So I think we are, in terms of the capital CapEx, I think it's actually coming down a lot, even this year and so on. The following section, which is the overview of the operation, property development, may I pass to Wendy to talk about it?
Thank you, Boswell. Good morning, everyone. Thank you for all your continued support. I'll now take you through our property developments updates. Our three key strategies for property developments are focused on project execution and early completion to enable early revenue recognition, strategic debt reduction, and cash flow optimization. Finally, leveraging a robust pipeline for sustainable growth. By implementing these strategies globally, we have successfully navigated challenging market conditions and achieved a remarkable achievement in our property development.
Our revenue was grown by over 91% year-on-year, reaching HKD 6.8 billion. FEC has a very healthy pipeline of over HKD 65 billion. This ensures long-term growth and stability of the next 6-8 years. We have accumulated strong pre-sales, securing a strong revenue stream of over HKD 11 billion. We are devoted to prioritizing early completion of projects to ensure early revenue recognition and to strategically reduce our debts.
This commitment is evidenced by our significant debt reduction of HKD 4.5 billion. Australia is one of our principal revenue streams characterized by a shortage of housing supply and strong rental yields. Despite the challenges posed by COVID-19, we successfully launched and pre-sold projects in Melbourne, Gold Coast, and Brisbane.
We regard Australia as a long-term revenue stream for our FEC group. One of our main revenue streams this year is West Side Place. Our recent completion, West Side Place Tower 3 and 4, consists of 1,500 apartments located within the Ritz-Carlton and Dorsett Melbourne Precinct. This development features a GDV value of HKD 5.6 billion. We have already settled over HKD 3.5 billion inventory. In fact, this financial year, with combined Tower one, two, three, and four , we have already settled over HKD 4 billion Hong Kong dollars and have used the proceeds to pay off bank loans.
Our next project, Perth Hub and Dorsett Perth, this is actually the first project built by FEC Construction Australia, which we established last year. By utilizing our in-house construction capabilities and our global supply chain, we are very proud of our team for delivering this project on time and under budget. With this significant achievement, we will be rolling out across Australia nationally. Perth Hub has pre-sold 88% of its units and will be completing 314 apartments by the end of this calendar year, with an expected GDV of AUD 803 million.
Brisbane, Queen’s Wharf Brisbane is a luxury integrated resort in Queensland, occupying 10% of the Brisbane CBD. We are very excited to announce the soft opening of this Australian AUD 3.6 billion project, which is scheduled to be opened September this year. The opening will include the casino floors, retail spaces, and The Darling.
Our residential Queen’s Wharf Residences, Tower four, very strategically located on top of this integrated resort, in which we hold a 50% stake. Queen’s Wharf Residences comprises of over 600 apartments with an attributable GDV of AUD 1.5 billion. The apartments are 100% pre-sold and will be completed early next calendar year. Aspen, in London. This project is situated in the heart of Canary Wharf. It is the third tallest residential building in the UK, with 65 levels.
Aspen offers a breathtaking and magnificent view of the Greenwich Park and the city of Canary Wharf. Consistent with our strategy on early revenue recognition, we have accelerated completion and initiated the early handover of the first phase in May last month, which consists of the first 20 floors and is 95% pre-sold.
Aspen includes over 500 apartments and a 235-room Dorsett Hotel set to open early next calendar year, with a GDV of HKD 4.3 billion. This is yet another testament to our ongoing strategy of excellence in project execution and early completion. We will also be anticipating to fully discharge the construction loan of over HKD 2 billion by the end of this calendar year. Victoria North, as many of you may know, is a mega-scale regeneration development project in Manchester and one of the largest regeneration projects in the U.K., spanning an area of more than 390 acres, which is equivalent to 17 million sq ft. This project would deliver 20,000 apartments over the next decade.
For Victoria North, up to today, we have completed and are on track to complete within the next 12 months a total of 1,500 apartments, which is ahead of our scheduled planning. This achievement demonstrates our capability in delivering large-scale regeneration developments, which also open doors to many, many more opportunities with joint ventures with the councils and enable us to recently win the attractive deals like the Old Trafford, which is right next to the Manchester United Stadium. Victoria Riverside, within the Victoria North, this project consists of three towers with a total of 634 apartments. Phase one, which includes Tower B and C with 340 apartments, is 100% pre-sold and is expected to be completed early next calendar year with a GDV for this phase of GBP 826 million.
Over the past three years, Manchester had witnessed consistently high demand for homes and with prices soaring by around 15%-20% since the end of 2019. Numerous studies have indicated that Manchester is one of the fastest growing cities in the U.K., outpacing many other parts of the country. In March this year, we launched the Falcon project in Victoria North. Within three months, we have already pre-sold and reserved 80%.
The project has an expected GDV of GBP 653 million. Singapore, as Boswell has mentioned, early this month, we have initiated the handover process of Hyll on Holland, which is 100% sold out with an expected attributable GDV of SGD 526 million. Within the next two months, we will fully hand over all apartments. Like what Boswell has mentioned, in fact, just two days ago, we have fully discharged the bank loan for this project.
Going to Hong Kong, Kai Tak, we have once again implemented the same strategy and expedited the early completion of the sales of Kai Tak office, which has enabled us to crystallize early revenue recognition of HKD 3.38 billion in March this year. This development also includes our Dorsett flagship hotel in Hong Kong, featuring 373 rooms and retail spaces with excellent connectivity located right adjacent to the sports park. The entire development is set to be completed in the next few months.
Finally, riding on the government's rollback on cooling measures to spur sales and Hong Kong properties, we have expedited the launch of THE PAVILIA FOREST on the Kai Tak Runway, which consists of 1,300 apartments. We will be launching very, very soon to the market at an unbelievable price. So if you are thinking of buying a beautiful apartment in Hong Kong, please keep an eye on this.
I'm going to get seen, but it's very soon. So please wait for that. You know, like Boswell has mentioned, Changzhou Gongyu in Shanghai, right opposite Shanghai University, we have over 4,500 apartments. We are in our final stage talk with a very well-established company in China. This will be a large revenue income for FEC in the near future.
To conclude, our projects across Australia, London, Singapore, Malaysia, Manchester, and Hong Kong demonstrate our global reach and our ability to deliver high-quality developments on time and within budget. The successful launches and early completions across these regions are a testament to our team's dedication and expertise. We are confident that our strategic focus on early project completion, debt reduction, and leveraging on our robust pipeline will continue to drive sustainable growth and stability for FEC in the years to come.
Thank you all for your time and attention. We look forward to sharing more successes with you in the future. I'll pass it back to Boswell.
Yep. Well, let me talk about the hotel as well on the following pages. On 27, which is a subpage 27, yeah, page 27, which is talking about the overview of the operating data of the financial year 2024. Well, the overall occupancy, RevPAR, actually, we noted a growth except Australia. I think obviously due to the reason of the new opening of The Ritz-Carlton, Melbourne and also Dorsett Melbourne. Well, these two hotels were opened in March last year and also April last year. So in the first few months, we are actually picking up the ramp-up period. To be frank, in the last quarter of the financial year 2024, we noted a great improvement already.
I think we believe that there will be a lot of improvement as well, as this is going to be a one-year impact, right? The full-year impact in the financial year 2025. That will be having a lot on the revenue as well. So due to this growth of the expecting performance in Australia, as well as the rest of the places in particular, Hong Kong, because Hong Kong always, in terms of their hotel operation, Hong Kong is always the major revenue contributor.
So I think in the coming year, it will contribute a lot on this recurring business cash flow stream. And in fact, well, during the financial year 2024, in terms of the revenue, it's dropped a lot to HKD 2 billion already. Yeah. When they also talk mentioned about this, we have the commercial office sold out end of March.
Also, on the other hand, well, on the same piece of land, we have Dorsett Kai Tak to be opened as well. 373 rooms, that would be our flagship hotel in Hong Kong. And we're expecting to open in the second half of this current financial year 2025. Upcoming hotel completion, also we have Dao by Dorsett North London, which is actually located with our Hornsey Town Hall development, which is also the residential development. Small hotel, well, 67 rooms.
Again, this is Dao, and this is the second Dao hotel in the UK. The first one, it was opened two years ago, maybe, in Shepherd's Bush. Another hotel in London, Dorsett Aspen, Canary Wharf, which is 231 rooms. Again, this is a mixed-use development. Like I said, well, we have the Aspen Residential. Within this development, we also have a commercial, very little portion of the commercial.
We also have this hotel in the Canary Wharf. So we're expecting to be open in the second half as well. Recently opened Ritz-Carlton Melbourne, well, I don't want to talk about this. We mentioned it quite a few times. Dorsett Melbourne as well, altogether, these two hotels located in the heart of the, I mean, the CBD of the Melbourne City, talking about 600 rooms altogether. On this page 33, as end of March, we have 8,000 rooms in operation. And we are expecting to increase by 2,000 rooms by, well, in two years' time. I think FEC, Dorsett are actually quite
expertise, if you don't mind I say that, in hotel operation, hotel management. We are able to time promptly in a good way for the opening. Two years ago, well, we opened a Dao hotel. Obviously, the UK performance is picking up.
I mean, in terms of the hotel, Hong Kong is picking up as well. So we are having another flagship hotel opening in Hong Kong later this year. Australia, also UK, Hong Kong, we noted, well, this is a good trend in terms of the hotel performance. So we timed the schedule and opened. Of course, we have the construction planning a lot behind, but we timed quite smartly in order to build up our recurring business portfolio.
Car park. Car park, well, this is like as a business model. As end of March, we have almost 120,000 car park space under our management, in which almost 90% managing the third-party management contract. So it's across Australia, which is our major jurisdiction that is producing this kind of revenue. Also New Zealand, UK, Malaysia, and also Hungary as well. Gaming.
Sorry, for the car park, just to add. The car park at Manchester Airport is under contract, which Boswell you've mentioned. We have two Australian properties that we have sold in the last 12 months. All properties were sold at above current value. Our overall strategy for the Care Park continues to focus on disposing of assets that have maximized in value in order to recycle our working capital, like what Boswell mentioned. We want to be more asset-light and reduction of overhead and also the technology platform.
The new Care Park app is actually in its final stage of testing and will be launched in the second quarter next year. This will empower Care Park to be a market leader in the technology landscape within the industry. It is expected that the new app will be the backbone of the continued growth and the probability of the group. Yep.
Yep. Gaming. Palasino, listed in Hong Kong Stock Exchange end of March. Very steadily revenue growth noted for the financial year around HKD 400 million. Well, as of now, after year-end, we are holding Palasino 72%. So we obviously will control both, I mean, under our consolidation, right? And we also reinstated the gaming license in Malta and delineated the plan to soft launch its services during this financial year.
Queen’s Wharf Brisbane, well, I think that will be opening in the second half. It's a mega project, not only the entertainment and also the hotel retail F&B. We also have three hotels, Rosewood, because one of our partners is Chow Tai Fook. And also The Star Grand and also our hotel, Dorsett, altogether is talking about around 900 rooms. And FEC with a holding stake of 25%. And Wendy, you want to add anything?
Yeah, I think regarding Palasino, we are positioning Palasino as a gaming platform and grow through organic means and acquisition. We are looking at a two-pronged approach, land-based operation and online. And also, I think what Boswell just said, there are some one-off expenses on the listing and restructuring prior to IPO. For Queen’s Wharf Brisbane, actually, I just went two weeks ago. It took me three days to walk the whole site. So it is a really humongous project, but it's looking very good.
The casino floors, all the casino tables, slot machines are all in place, and they are all. I've never seen something so modern, so high-tech and sleek. So you have to go and see it. Within the casino floors, there are seven F&B outlets. And also within the retail areas, we are opening another seven restaurants this time. We are also opening the, just what we said, the Darling hotel of the casino.
BC. FEC holds 53% stake. During the year, we issue, I mean, BC issued RMBS reaching AUD 1.5 billion. Strong support from the blue chip shareholder. And also, and we also issued in June, actually two weeks ago. BC also issued another RMBS, which is talking about AUD 530 million as well. Prospects, I think that is a very important page. Financial management, like I said, well, like we said, we continue to reduce to the level of finance costs during this high-interest environment. And hopefully, the interest rate will be coming down next year. And also, obviously, due to our visibility of the presale value, I think a lot of projects are going to be completed, and that will be helping our cash flow as well.
Further, focusing on monetizing and completing existing development, year-marked it on call. New launch, opening of the property development project, I think is a lot of helping the managing the financials. Property development business, strong on book, presale, and pipeline, and shows good visibility. Well, we mentioned it quite a lot.
Also, we are expecting to launch Parkway Summit, THE PAVILIA FOREST , and 640 Bourke Street in Melbourne. Actively pursuing next phase of the Victoria North Master Plan in Manchester. And the GBP 300 million mixed-use development in Stratford, that will be helping us as a medium-term cash flow and the revenue recognition. Launch of the Falcon in Manchester in end of, I mean, late March, which is not a big project, honestly. Well, it's talking about 189 units up to these three months, end of June, two to three days earlier. It sold out, I mean, pre-sold 50% already.
I think that is the benefit of the diversification. I think in Australia, in particular, Perth, Brisbane, Gold Coast, Singapore, well, very hot. Manchester, we almost all sold out, almost all sold out in terms of our property development. We also will be actively selling our existing stock of HKD 6.1 billion, which, well, we just mentioned in the previous page, HKD 1.3 billion has been scheduled to be completed. Well, this is a contract itself, right? Hotel operation and management, new hotel will be attributable to the upcoming year in terms of the cash flow, revenue recognition, and all that.
Also, we will be launching the Dorsett Kai Tak. That will be adding to the, well, the hotel, I mean, the revenue contribution. Car park continues to face some underperforming and mature car park asset, recycle the asset as well. Secure additional management contract.
Palasino, well, entered into an MOU with a strategic partner to explore operating prospects in just May. Malta online gaming license reinstated, and the soft launch will be happening this year. Just mentioned the opening of the entertainment investment in Brisbane in the second half. That will be another source of the recurring business and cash flow. Sustainability, we did a lot of this ESG environment.
Well, I mean, ESG topic, environment, being an employer of choice, placemaking, contributing to the community. I think we also have two sustainability-linked loans and also the green loan altogether is talking about HKD 1.6 billion. We will continue to build up the ESG and spend effort to create a long-term value on page 44. Yeah. And 45, which is talking about some award that we have achieved.
And we are quite pleased to have this recognition from the market and from some organizations as well. I think that is the end of the presentation.
We will now come to the Q&A section. If you have any questions, please raise your hand. And for online investors, please type your question on the Q&A box. We will read it out one by one.
In fact, well, we have the box, how to call that, the question box on the computer online. Some questions. 公司目前的美元永续债, that means the US perpetual bond, 有什么计划会考虑赎回或回购吗?
Okay, I think this is a very good question. I think a lot of banks, bondholders will ask. I think the perpetual bond is actually considered as equity. So we have to calculate. We have to balance the bank confidence and also the financial structure as well.
I think our intention is to call, but may not be the whole trunk because this is, well, when you calculate, put back the perpetual bond back to the bond issuance or reduce our, I mean, increase our debt level, that will be the impact on the bank confidence. So we have to calculate. But the intention is, yes, we will do that partially. So I think Boswell will wait until we look at the numbers. Yeah, but the answer is cannot be finalized because we need to wait and see in the coming few months and a lot of assumption of what I've just said just now.
Yeah. Another question from the box. Just curious if the group will invest in data center, storage, warehouse, student accommodation. How does the group see Hong Kong future development? I think I answered partly. Sure.
Of course.
Another part, yeah.
Data center, storage, warehouse, sorry, we don't have. I think we are quite diversified in terms of the location. But in terms of the business, we are quite focused. Property development anyway, in the medium term, long term, is talking about 60%-70% of our revenue. That is for sure. And the remaining 30%-40% will be recurring income business. In which hotel will be the big hand? Yeah. So we will focus on this. But for the student accommodation, I think we are exploring the opportunity. This is, we have the hotel, we have the Dao, we have the professional team. We may consider to explore some further, explore the market of this student accommodation in UK, in Hong Kong, and so on.
Yeah. I think we're more focused on what we are good at at the moment. And there are many opportunities abroad.
If you ask me on Hong Kong properties, of course, we have THE PAVILIA FOREST , 1,300 apartments to go. So we have more than enough inventory. Looking at all the numbers recently, the margin we get from overseas are much higher. So of course, I mean, Hong Kong is our base. We'll come back to Hong Kong. But at the moment, I think we are probably much stronger in Australia and UK. And we are looking at other large regeneration projects where we work with the councils, and they will give us grants. And it just makes a bit more sense at the moment.
Got a question from the box. 以往远东发展派息都比较好。 接下来这几年政策没有变，有没有增加的可能性? Let me answer first. Sure. In case you have some add up. I think we stick to our dividend policy, which is talking about 30%, 40%.
In fact, compared with our adjusted profits, what we propose now, HKD 0.14 for a year, is actually more than that. So hopefully, once we are having our project completed more and more in the future, actually since 2024, which is over HKD 10 billion already. I think the chance is yes, of course. But yeah, we stick to our dividend policy.
Yeah. Yeah, I think a lot of our shareholders look at you. So to us, of course, we value our shareholders, and we want to keep it consistent, right? I'm very hopeful with all the presales that we have and all the contracted sales and our future developments that we would always at least be consistent of what we are giving, which is this year is 14%. Is that right, Boswell? You know our payout says it's 14% you, right?
Oh, yeah, that's HKD 0.14.
Yeah. You mean , it's 14% yield. 14 cents. So it's group, yeah.
I think it's good yield as well, right? Yeah. Okay. Another question from the floor. I mean, from the box. 想问问每年利息支出目标减多少? Well, I think we mentioned this in the last interim results. We target to reduce the debt level HKD 6 billion, of which, I mean, HKD 6 billion. HKD 4.5 billion has been achieved with our effort of the whole team of FEC. I think we keep on reducing the debt level. We can't promise exact number in the coming half a year and then one year later. But obviously, I think during the almost an hour presentation, I think obviously we have a lot of projects coming up. And also the recurring business are actually showing the growth already. I believe that, well, the debt level will be coming down. Yeah.
Another question that we will call the perpetual bond, I think we answered already. What is the average interest cost? Interest rates. Very sensitive question. There's a lot of bankers here. But we also mentioned this in our, I mean, in the final result, if you have time to read, all right? But I think thanks a lot of the support from the banks. I mean, thanks support from a lot of banks. I think in terms of the even and secure, we were talking about HIBOR Plus, maybe HIBOR is quite high now, right? Maybe 1 point something. Almost closer to 1.8, 1.9. But I think it's still a good rate, yeah, to company. Some other question also talking about the, I think it's a duplicate, yeah. And any question from the floor?
Okay. This comes to the end of our investors' presentation. Thank you again for joining us. See you next time.