Good morning, ladies and gentlemen. Welcome to Far East Consortium International Limited's 2025-2026 Interim Results Investor Presentation. Before we officially begin, on behalf of our company, I would like to express our deepest condolences to the victims of the fire incident that happened this Wednesday. We are profoundly saddened by the loss of lives and the injuries suffered. I first always the victims, the families, and everyone affected. At this moment, may I invite everyone to please rise and observe a moment of silence in memory of the victims. Thank you. Please be seated. Now we will proceed with today's presentation. Let me introduce the management with us today. They are Ms. Wendy Chiu, Executive Director, and Joint Managing Director. Mr. Boswell Cheung, Chief Financial Officer and Company Secretary. Ms. Winnie Chiu, Executive Director and Joint Managing Director, will be joining us later. Now may I invite Mr.
Cheung to start the presentation. Mr. Cheung, please.
Thank you. Ladies and gentlemen, we have announced our interim results of the financial year 2026 last night. Actually, you can go to our website. We posted the result in detail on the website as well, on our company website. This morning, we have an interim result briefing section. On page five, that highlights the key theme of the first half. Adjusted revenue reached HKD 4.9 billion. Cash profits, adjusted cash profits, HKD 203 million. The major source of income, the major source of the revenue, property development, which is HKD 3.2 billion, mainly from the settlement of some major projects in the UK, in Australia. The Victoria Riverside in Manchester, we have completed the Tower B and C, and Bromley Street as well. We have the sales of the inventory in Melbourne Westside Place. That is a four tower, right?
Also the Aspen at Consort Place in London. Also, we have the settlement from the property development sales of our JV projects, including Pavilion Forest in Hong Kong, Park Wai Sum. Also the Dorsett Place Waterfront Subang in Malaysia, and the Tower Four of the Queens Wharf Residences in Brisbane. Other than the settlement, which you can see from our first half results, also we have the pre-sale. 640 Burke Street in Melbourne was launched late March this year. Up to now, it's been like 10-11 months since launch. We have sold out almost 40%. Total cumulative pre-sale value and the unbooked contract sales amounted to HKD 9.3 billion. Hotel, up about 10% to HKD 1 billion. I think the major contribution coming from this hotel, Dorsett Kai Tak, which opened end of September last year.
In particular, since the opening of the Kai Tak Stadium next door, since March, I think the hotel occupancy room rate improved a lot as well. Hopefully, that will be continuing the growth and performance and reflecting the second half and so on as well. Dorsett Canyon Resort London and HubX Shanghai soft launch in September 2025. Honestly, they just opened in our first half. In particular, the HubX Shanghai, which is only open on 29th of September, only two, three days in the first half. Hopefully, on the second half and also in particular next year, there will be full year impact and contributing to the cash flow as well. Car park down a bit 10% to HKD 343 million. Gaming up about 11%, which is HKD 2,018 million as well. That is the revenue.
The net loss attributable to the shareholder, HKD 988 million, although we have cash profit adjusted HKD 203 million. I mean, there are some non-cash adjustment, right? Mainly coming from the impairment losses. For example, the HKD 193 million, which is actually on one of our projects, 100% owned project in Sai Ying Pun. Also, the impairment loss recognized for the PPE, which is HKD 88 million, which is in relation to a deposit for land acquisition, but back to maybe 2010, 15 years ago. That is we have compromised. I mean, we have discussed with the valuer and we have made the impairment loss this year. Share of the impairment loss by JV and also associate. I think obviously that is one of the JV projects in Hong Kong, the Kai Tak.
We have made HKD 530 million. The difference, HKD 110 million, is actually coming from the DBC, which is the entertainment resorts in Brisbane. Maybe we may talk about that in more detail later on. Reduction in the net debt, improvement in the adjusted net gearing ratio. Like I said, we've got quite a few project completion and we've got some non-core and core disposal. In fact, we have paid down quite a lot on the project loans as well as some unsecured loans as well. At the end of, I mean, end of September, the net gearing ratio is talking about 64.9%. Down a bit, about 2.7 points compared with end of March, meaning that during these six months, we have achieved down a little bit 2.7 points.
I think in the coming ongoing in the second half, hopefully we have more projects to complete, getting some cash flow on the core pieces and also some of them may be hopefully non-core disposals as well. Hopefully the net gearing ratio will further down. The continuously unlocking value. During the first half, we monetized mainly two transactions. It is about HKD 1 billion coming from sales of our Hong Kong mortgage book, which is talking about HKD 347 million. Disposal of the BC estate, that is another mortgage book, but in Australia and UK, which is talking about almost HKD 700 million plus. Altogether it is about HKD 1 billion. Also, we have entered into a non-binding term sheet to dispose of certain interests of the risk output. Just now, I mean, two weeks ago.
Hopefully we can, I think when we come across more maturity stage, we may have some discussion or announcement on that. Hopefully we can achieve it. Also, we have entered into an agreement to dispose of car park in Chatswood, Sydney for like AUD 3.7 million. In fact, in the past, I think almost 24 months, Care Park has been doing a good job for selling quite some non-core car park assets in order to have a more like business model, right? Getting back some cash and reduce, this is actually our objectives as well. Considering to unlock some hotel revaluation surplus, which is talking about HKD 18 billion. That one we have corporate exercise. We may proceed, but at the moment we can't disclose any, but we have this idea.
Hopefully when the market comes, we may go further and have more disclosure. Restructuring on the investment in Queensland. I think that is when we have on 12th or 13th, 12th of August this year, we have an announcement talking about the implementation deed for one of our JV projects, which is the Queens Wharf Brisbane projects. It is the thing what we are holding 25%. Hopefully when we have completed the transaction, we will increase our stake to 50%.
Sorry, regarding the Queens Wharf Brisbane project, the completion is supposed to be on end of November, but we've just extended due to there's a lot of CPs requirements from the governments. We are very hopeful we will be finished by end of March at the moment.
On next page seven, these are some highlights. In fact, I have talked about that in the last two pages. One of the key points, I mean, from this page is the adjusted gross profit margin. We have 3.6 points increased, mainly from the sales of property. Also, the finance costs come down a little bit. For P&L disclosure, the finance cost is talking about HKD 373 million, combined with last financial, I mean, the interim period, down a bit 25%. I think most of the bank loan, we are actually with the Hong Kong dollar. If you guys remember, I remember the HIBOR come down since March, I mean, since May, then come back a little bit in August and September. In fact, it's helped a lot on our financial saving as well.
Hopefully in the second half, when the U.S. rate comes down, hopefully, Hong Kong will go in line as well. That will be a little bit of help on our financials as well. On page eight, that is talking about the gross profit margin. Overall, 34.8% compared with last interim period, 31%. Increased a little bit, well, 3%, almost 10% in terms of the rate comparison. As you can see, the main driver or the contribution is actually from the property sales, property development, which is 31% compared with last year, almost 27%. I think that is a higher gross profit margin recorded from the sales of project, sales of the properties in Australia and also UK, UK is in particular the Manchester projects.
When we talk about the net gearing ratio on page nine, you may see we have reduced about HKD 1.2 billion debts, although we have some other impact from the impairment losses. The net gearing ratio come down to 64.9%. If you, well, we have a performance adjusted net gearing ratio before impairment, which is talking about 63%. Hopefully we will have further improvement in the second half as well. Short-term debt. This page, a lot of commercial banks are very concerned about that. I think so that's why I in particular set up a separate page to talk about that in detail. Short-term debt meaning, in the coming from end of March, end of September point of view, in the coming 12 months, that will be mature. HKD 10 billion improved a little bit, about HKD 900 million compared with the end of March.
Corporate hospitality and car park loans, which is talking about HKD 5.8 billion. In fact, I think most of them are actually in relation to hotel asset. I think the hotel asset in particular, Hong Kong, Hong Kong is from a hotel division, Hong Kong is the main contribution from a cash flow from a revenue perspective. In particular, if you're talking about the occupancy, the room rate, I think Hong Kong, the first half compared to last year, first half improved a lot. We don't see any, I think the bank support us very well. The refinancing, I think is hopefully as a matter of procedure. The project development loans, which is talking about HKD 780 million. I think this is talking about our projects in particular for the pre-sale, I mean, from a pre-sale perspective.
I think most of our projects when we come to end of the completion, end of the development program is actually, I can say over 90% or even 100% pre-sale already. I think we are focused on the mass market and focusing on the CBD as well across Manchester, the whole Australia, Singapore, even Hong Kong is now looks like picking up and more stabilized as well. I think once we have completed all the projects, get the, I mean, get the legal title exchange, get the sales process, pay down the project loans. That is how it works. This one is the most important is when we will complete the project. I think that's on the Japan. Other corporate loans, that is most concerned by some banks. This is meaning that this is unsecured loan.
As at end of September, we have HKD 2.7 billion outstanding as at end of September. I think over half of which has been dealing with the bank, I mean, have been refinanced already. Another 50%, less than 50% actually, I mean, it's not coming to the maturity. I would say this 50% we have been dealing with, roll it over, refinance it because this is maturity within the last two months, October, November. This is a matter of the roll over. I think so long as we can prove to the bank cash flow, the business diversification, the risk, and also the bill to sell model, sales of property and also our recurring business, that is our cash flow and then, I mean, the bank support us. In fact, more than 50% has been rolled over already.
Terms, I mean, the loans with partial repayment terms, this is the repayment schedule when we start the loan, we have a repayment schedule. As of end of September, we have HKD 640 million on the repayment schedule within the coming 12 months. This is payment. This is expected. The other cross, data point is the liability with the repayment, repayable on demand crosses. This is very academic. Even though we've got some loans, three years, five years, but there is a clause stating that, you know, this is on demand. According to the account standard, we have to classify as a current liability. In fact, I would say so far, so many years in the past, at least 15-20 years, we haven't seen any polar call because of this cross, right? The demand cross. It is very academic.
That is how we are dealing with the short-term debts coming. Page 11. I think we have accelerated quite a few project completion of the property development, in particular Victoria Riverside, like I said just now, like, Tower B and C. In fact, this project consists of Tower A, B, and C. B, C has been handed over since July. Actually, end of September, all the bank loan of this project has been paid off. Meaning that the Tower A is actually unencumbered. We are expecting the Tower A to be completed in the first half of next financial year. Hopefully May, June, July, so that we can get back the sales process of Tower A. We are expecting the Tower A, like I said, this is 100% pre-sale already. The Tower A will have a cash flow of about HKD 1 billion.
Also actively monetized some inventory among academia in Hong Kong, Aspen in London, and Westside Place. I think we pick up the right city. Most of the cities that we have our property development and the sales are actually enjoying the population growth, the hot demand for the housing as well. We monetize quite a lot in the first half as well. We spent a lot of effort on the existing inventory. As at end of September, it is actually HKD 10 billion outstanding. I mean, on the book, I mean, on the book as at end of September, in which almost a quarter, HKD 2.7 billion, has been contracted. Typically, when you contract it within three months, two months, three months, they will be coming into our cash flow and then get the title, get the sales process.
HKD 2.7 billion should be coming into the second half as well. Divesting some non-core asset and business. Previously, in the last two pages, we talked about that as well. We cash out the Hong Kong portfolio, Hong Kong mortgage book portfolio, Busy Invest and Chatswood Car Park, which is a smaller one. Also, we have entered into a non-binding contract to sell the certain interest in the risk covered purpose as well. Also, we have the hotel portfolio for sustainable growth. Kai Tak just opened last year and in particular, the benefit of the location. I think looking forward, these cash, I mean, this is our flagship hotel in Hong Kong, Kai Tak, right? It is a superstar in our portfolio. Some hotel actually opening, Dorsett Canyon Resort, London, soft open in September.
That is bringing up the revenue as well. Liquidity. Other than the liquidity level of which as at end of September, HKD 3.7 billion. Also we have some unutilized facility for tertiary corporate use, construction purpose. Add it all together, it's talking about HKD 5.8 billion. We've got five hotel unencumbered, totaling about HKD 1.3 billion. For the capital commitment, I think this is stated HKD 938 million, but from my point of view, it's actually less than that because some of them actually supported by banks and some of them actually we are not in a rush. Yeah, hopefully, I mean, the hotel portfolio actually coming into the final stage. I think once we, I mean, the hotel rooms are big enough, so we may not consider to increase the hotel room as well. That is the financial part.
The remaining, the sale, I mean, the property development, may I pass to Wendy?
Thank you both. Before I begin my presentation, I want to express my deepest condolences to the victims and their families. My father and I were in London when we first learned of this tragedy, and we are deeply saddened by this. We immediately reached out to the Hong Kong government to see what we could do to help and support. Hong Kong is our home and is close to our hearts. As a family together with FEC endorsed, we are committed to doing what we can to help and to stand alongside with the community. I will leave the details with Wendy later. Regarding property updates, in the face of market conditions, we continue to accelerate project completions to enable earlier revenue recognitions, optimize cash flow, strategic reduce debt levels, and strengthen overall financial performance.
We maintain a robust development pipeline of approximately HKD 62 billion, which will support sustainable growth over the next six to eight years. We have actually successfully reduced our gearing ratio from the highest points of 74% down to 63% adjusted gearing ratio before impairment, which is roughly we have reduced HKD 8.3 billion within two years. This is a remarkable result with the whole company's teamwork. For interim period for property development revenue from HKD 3.2 billion versus HKD 3.6 billion last- year, last- interim period. Profit margin, however, has risen from 31.3% versus 26.8%, which Boswell has also explained due to Australia and also our Manchester project.
For this interim period, adjusted property development revenue amounted to HKD 3.2 billion, mainly contributed by Tower BC in our Manchester project, which is roughly HKD 750 million, Aspen in London, revenue around HKD 270 million, and Westside Place, Melbourne, revenue around HKD 672 million, and Mount Acadia in Hong Kong, roughly HKD 139 million. In addition, with our joint venture projects, including Pavilion Forest in Hong Kong, 50% revenue of roughly HKD 574 million, Dorsett Place, Waterfront Subang in Malaysia, HKD 149 million, and Queens Wharf Residences, Tower four in Brisbane, 50% of the revenue, which equates to HKD 460 million. Sales momentum has been picking up in the recent months. As of 30 September 2025, we have secured approximately HKD 9.3 billion in pre-sales and contractor sales, providing a strong visibility of our future revenue. Overall, Manchester is one of the strongest markets we have.
We started sales priced at around GBP 380 per sq ft, and up to today, we are selling over GBP 580 per sq ft, which is over 50% growth in the recent years. Victoria Riverside has been a key revenue contributor this half year. Located in Red Bank neighborhood of Victoria North, the project comprises of three towers and 38 townhouses. Tower BC, together with the townhouses, completed in July 2025, with an expected GDV of about AUD 1.1 billion. Over 90% of units have been pre-sold. Tower A, with 275 units and an expected GDV of AUD 1 billion, is scheduled for completion in the first half year of 2027. Approximately 99% of its units are already pre-sold. We have actually, like what Boswell said, already repaid all our construction loan. This AUD 1 billion is pure cash flow sending back to Hong Kong headquarters.
In Manchester, we have sold out all other development inventories. With our track record of delivery of housing in Manchester, Manchester government are very supportive of our schemes. We have recently received another GBP 900 million new tram stop funding into our development. This will greatly benefit our existing customers and future schemes. Perth Hub, the first phase of Perth City Link, was completed last financial year with all units fully settled this half year. Located next to the Perth Arena, it is a mixed-use development comprising of over 300 residential apartments with a total GDV of approximately AUD 816 million. This marks the first project successfully delivered by FEC Construction Australia. Dorsett Perth, also being delivered by FEC Construction, is progressing well and is expected to be completed in FY 2027, further enhancing our presence in the city.
In London, Aspen at Consort Place has been another key revenue contributor this half year, located in the heart of Canary Wharf. It comprises of over 500 apartments with a total GDV of GBP 4.5 billion. Completion has commenced in phases, with handover starting in May 2024. In the first half of FY 2026, approximately GBP 270 million was settled. As of 30 September 2025, remaining stocks stood at around GBP 2 billion, of which GBP 163 million has already been secured as contracted sales. Sales and settlement are expected to continue. With the shortage supply of housing in London and large corporations like HSBC deciding to stay in Canary Wharf, and new technology companies are also seen moving into Canary Wharf. We are hopeful this will boost Aspen's sales in the near future. For Melbourne, we continue with our existing strategy by actively selling our completed inventory.
Westside Place in Melbourne, Australia, is another success story. It features a total GDV of approximately HKD 10 billion over the last two and a half years, despite market with outperform and sold out 1,400 units, selling 10 units per week. As of today, we only have just over 30 apartments left to sell. This is a success story and a huge credit goes to the project and sales and marketing team. In Hong Kong, we continue to actively sell our completed inventory through targeted campaigns. Mount Acadia, located on Tai Po Road, comprises of 62 apartments and four houses, with a GDV of HKD 1.8 billion. We right now only have 11 units remaining and four houses. Pavilion Forest, it actually has been outperforming the whole Kai Tak Strip.
I mean, New World has been really trying to push this and really credit goes to their sales and marketing team. We launched the Pavilion Forest in Kai Tak, a 50% joint venture project with a total GDV of HKD 10.4 billion in July 2024. As of 30 September, we have already sold over 700 units with a GDV of over HKD 5 billion out of the 1,300 apartments. This testifies Hong Kong demand on residential apartments. The project was completed and began handover in September this year. In the first half FY 2026, total settlements amounted to over HKD 1.1 billion, of which approximately HKD 570 million attributed to our 50% stake. There is roughly HKD 4.6 billion remaining stocks, which are mostly on the upper floors with the panoramic view.
In Brisbane, our joint venture project, Queens Wharf Residences Tower four, continued to contribute to adjusted revenue, total GDV of HKD 3 billion. We have totaled 667 units and we only have three units left. Tower five were relaunched for sales in August 2025 at a further 15% uplift. As of 30 September, approximately 50% of these relaunched units were pre-sold, reflecting resilient demand at higher price. Tower five had a successful relaunch with, sorry, over 75% is pre-sold and completing in end of 2028. For Melbourne, given the success of Westside Place, we have recently launched our mixed-use development project, 640 Burke Street, in February 2025. Located in the heart of CBD, right adjacent to Westside Place and Upper West Side, the development will have 68 levels and comprises of over 600 apartment units with a total GDV of approximately AUD 4 billion.
This is an ultra-luxury apartment development and is asking for one of the highest residential pricing in Melbourne. The project received a strong market response at launch and were able to achieve higher selling price, driving an uplift in overall average pricing and reinforcing the premium position of the development. Over 53% pre-sold and reserved at AUD 17,000 per square meter. Completion is expected in FY 2029. Overall, we remain cautiously optimistic that our strategic focus will continue to support sustainable growth and stability for FEC in the years ahead. We have approximately HKD 62 billion in our development pipeline, and by driving early project completion, we aim to contribute meaningfully to debt reduction. Thank you very much for your time. We appreciate your continued support and look forward to sharing more to you. Now I would like to hand over to, Winnie, would you want to hop for hotel operations? Thank you.
Thank you. Good morning. Regarding the hotel performance, our total revenue is up 9.5%, making us from HKD 997 million to, yeah, HKD 1 billion, yes, almost HKD 1 billion. I think this is a big milestone for us to reach the HKD 1 billion mark. In terms of the occupancy, we have been trading up. Again, I think in terms of geographical location, there are definitely some stronger ones, and I do think that our strategy in kind of diversifying in different cities makes a huge difference when times, you know, in tough times. I think Malaysia has gone up quite a fair bit. Hong Kong is on a trend up, which is where we're very happy. I think that's kind of what I'd like to share. In terms of the room rate, the Dorsett Group has gone up about 5.2%, with Palestino about 1.3%.
Again, similarly, the RevPAR will have the same trend, bringing our RevPAR from 542 - 572. I will not go through the detailed kind of performance analysis. I am sure a lot of our investors can read for themselves. Regarding the new hotel opening, we have also just partially opened Canary Wharf. With the units that are open, our occupancy is around 70%, so it is not bad. It is, of course, phase by phase because we want to get into service as soon as possible. I recently came back from Shanghai, and we have launched our first hostel project, HubX, and it has been very successful. This model actually brings down the cost a lot. If you look at the furniture, it is really very simple. In terms of the construction, again, I can foresee that this brand, we can do a lot of turnarounds.
We see a lot of, at the moment, of course, because the location is right opposite Shanghai University, so there are a lot of students booking, but this is really a youth hostel kind of brand. Again, it's very fast turnaround. At the moment, the average stay is about 1.3 days. That's, and you can foresee, I think the number of staff, I would believe that this margin eventually will be higher than the four stars because you do need much less number of staff. In terms of the booking and all that, we're going all electronic. Even the door lock and all that, we will be using all electronic. Again, I do foresee that once the success of this brand, we will try to bring it to Hong Kong as well.
Similarly to what we've done with Dow, Dow by Dorsett North London has also just opened. This is more service apartment. Our first one was in Singapore. Of course, with the success of Singapore, we also opened London, the first one, the Shepherd's Bush one, and now with the North London. I think I spoke with several investors in the last two years. We've really tried to pivot into more asset light model. Thankfully, the market has been quite receptive. In terms of operation, we are still streamlining because, of course, from an owner-operator model to going into an asset light, it does take a little bit more build-up of basically your SOPs, you know, but with the digitalization, in fact, I think it's much easier to be consistent. We have had Dorsett Changi City in Singapore.
In fact, this hotel, our investors are so happy because we've bought up, I think in terms of the valuation, it's almost doubled. At the time that we bought it until now, it's really about two years. Yeah. I think by this way, we really do deliver, as always, value for investors. The model, for some of you may not know, let me update. The model that we have actually used here is that we go in as in Dorsett, go in about 15% equity. Majority will be TPG Angelo Gordon as well as Atelier, a family office over there. We basically went in and add value in the way of creating more rooms. We've created almost 100 extra rooms. As a lot of you seasoned investors know, hotels are really valued by how much per key.
Of course, there's an immediate effect of uplift once you create more rooms. Dorsett Agora Sakai is one of, it's our first hotel as a Dorsett into Japan. It's very well received. In fact, the local government is so proud of our product. This year's marathon will be starting in our hotel of Osaka. Please feel free, any of our investors would like to, you know, join our marathon. Again, what we have deployed in this hotel, the Sakai, is we really look at how to add value to the city because this is kind of a joint venture with the local government. Apart from building the hotel, really enhancing the area. Right next to, actually where our car park is, we've brought in an aquarium that has like four dolphins and there's kind of a Cirque du Soleil in the same area.
Really, we look at it as a total package. Quite a lot of people go to Japan for a total package. Of course, I mean, given the current sentiment, my forecast for Christmas will be a bit, definitely I would feel that it will be less than expected. In terms of management contract, I'm happy to announce that we have now, the Dorsett Fiji is still going on, but we have signed as of last week into the second phase of Nanyang Technology University managing their student accommodations as well as Dow, which is this Dow product will be in Johor Bahru. In terms of the pipeline, we do have a Dorsett Perth and Dorsett Brisbane coming along. In total, this will bring our room count March 31st to over 10,000 rooms.
I think at that, I will leave it to, we can talk more on the Q&A session, but at that, I will leave it to Boswell to carry on the car park.
Thank you. Thank you. When you on page 35, car park revenue decreased about 10% to HKD 343 million in the, we just mentioned this in the first page. Just the gross profit margin decreased to 10%. I think the main reason is the holding cost, the property holding cost due to the government regulation over the Victoria estates in Australia. We continuously to phase out some underperforming car parks and divest some mature car parks to unlock the capital for the future investment and debt reduction. Like I said, in the last 24 months, we actually sold out quite a fair bit on the non-core car park asset as well. Also, we have entered into an agreement to dispose one of the car parks in Chatswood, Sydney for AUD 3.7 million. Also, the gaming part, this is the Palatino.
In terms of the revenue, it reached HKD 218 million, increased by 11%. The adjusted gross profit margin increased to 42%. I think the main, well, due to the increased visitation following the Austria marketing campaign. Currently, FEC holds about 72% of Palatino. Hopefully also we are going to open another new mid-groove casino in Czech Republic. QWB, that is Queens Wharf Brisbane projects. This project was soft opened end of August last year. Up to now it's been over a year. We have opened the gaming floor, the mass gaming floor, the premium floor as well. Also one hotel style, Grand Hotel, and some of the retail, you know, the FMB as well. On 12th August, we have entered into an implementation deed with the 50% owner style for the SS Wharf agreement. We may talk about that later on.
I think just a few notes on this, Queens Wharf Brisbane, we have just recently celebrated our anniversary and we actually have calculated over 10 million people has actually went through our precinct, so we're very, very happy with this footpath. Going forward, of course, there's the Star Grand Hotel, which is over 300 rooms, and we are looking to adding 700 more with Dorsett and also Rosewood Brisbane. As Boswell, and I'm sure everyone's aware that we are actually in the midst of completing our transaction, and also we are in the midst of looking at international operators, right? At the moment, there are quite a few very international operators at a very competitive price with, you know, with a much lower management fee, but of course with a huge awareness of brands as in Asia, right?
We are hopeful for this Brisbane project to fly in the very near future, especially given, you know, the Brisbane Olympics coming up. Also, of course, with the monopoly of over 25 years and also a gaming license of a substantial years, we believe that this is a very, very valuable project that we would be looking forward to completing the 50% transaction together. I'll pass it back to Boswell on the prospects.
The outlook, actually, this is summarized, I mean, summary of what we have discussed just now. Gearing ratio leverage expected to be, you know, further down since this is our, you know, our first priority to pay down the bank loans and all that, right? Also we have got some non-core and core business coming in the second half in particular. Accelerating the completion of the property development, we just mentioned one of the projects, Victoria Riverside, we have done it. Hopefully in the first half of this next financial year, in particular for the Tower A, when we complete that, will be another big cash coming in. Dispose of our non-core asset, we just mentioned, which is about two weeks ago, we have entered into a non-binding term sheets to dispose of one of our hotels in Australia.
Locking the hotel revenue surplus, hopefully we can have a good, well, present more details in the right timing. For the visibility of the cash flow coming from the property side and also the recurring business, HKD 9.3 billion in the pre-sale and sales contract, in which, you know, that is the out of which HKD 2.7 billion actually coming from the completed stock sales and also, you know, the difference talking about is about HKD 7 billion are actually the sales of projects. Sales of projects, this is the in relation to the in relation to the pre-sale that will be coming into completion within these coming two years. Hotel recurring cash flow expected to grow with, in particular, with some new hotels stabilization.
Four new hotels coming up in 12 months, car park, phase out the underperforming mature car park asset for the purpose of, you know, cashing out and get a cash for the debt reduction as well. Becoming more towards to asset light business model. Gaming, open another small, actually this is a small casino. Also we have the restructuring of the QWB projects. Yeah, this is the end of the presentation.
Thank you, Mr. Cheung. We will begin our Q&A session. If you would like to ask a question, please raise your hand and our team will pass the microphone to you. Before asking your question, kindly introduce yourself and the company you represent. For online investors, you are welcome to submit your questions through the Q&A box and we will read them out one by one.
Online actually some questions, I may pick one. One of the questions on the online dialogue is the Yaru project, which is the Sai Ying Pun projects, Pavilion Forest. Do you see any further impairment? That is the impairment we have recognized in the first half. In the second half, I think hopefully they are all related to Hong Kong property market. Hopefully the Hong Kong property market is getting more stabilized, in particular since a couple of months ago. In fact, our sales in Pavilion Forest project are actually quite doing well. Hopefully in the second half, we can achieve what we want to achieve, right? In fact, we are having some kind of different strategy on the sales as well. Hopefully we will not have any impairment, material impairment, but it's really subject to the market, to be honest.
Sorry, I mean from the market at the moment, I can't say I doubt, but I must say I don't foresee there will be a further impairment. Actually, I think this impairment will have been quite conservative. Given the, you know, uptake on the market in Hong Kong at the moment, I don't believe so, to be honest.
Any more questions?
Maybe I will talk a little bit about sustainability because I see that it's in the appendix. Just because I see also banks that have supported us in a sustainability loan. Quite a, if you look at our loan book, we are actually converting, especially the hotel side, more and more loans on the sustainability side. I do chair the ESG of the group. Maybe since we have investors here, I will talk about the strategy and in terms of, you know, what we're thinking in the sustainability front. Our group's focus has always been more in terms of ESG on the S part, the social part. If you look at our, we do have quality scholars and in fact, and they are really making great impact in the world. I think most notably is head of our alumni scholar, Natalie Cheung.
She's the first lady that actually went to North Pole, actually really in terms of one of the leaders in sustainability in Hong Kong. Of course, earlier my sister did mention about the Tai Po fire. In fact, the last two days I've been trying to, I have been working with the government and seeing how we can relieve the immediate housing. Thankfully we've kind of been working around the clock, Dorsett as well as FEC has really been supporting our project, Runway 1331, which is the old Kai Tak project. At the moment, yes, as of last night, I think we can deliver about 1,000 housing for the immediate relief for all the residents in Tai Po.
They will be coming in phase by phase because, of course, the majority of the current residents are still wanting to be near the hospital as well as near their building. Because this help that we are extending will not be three nights. It will be a bit longer, at least I would foresee a month or so. Our group have actually had the experience from this, from actually relieving the victim and the victim's family from Grenfell. A couple of years ago, Grenfell, London, there was a big fire and our team was also, and the group Dorsett Shepherds Bush was also the major hotel in supporting the relief. I think, you know, in terms of really our belief and where our heart is, is really very much into this.
What I do hope really in terms of adding value to the ESG in Hong Kong as per se is to bring more measurements. I see a lot of investors are here. I really hope that you all share what I preach for is to actually have impact investment because only by this way we can actually measure each other and push for kind of the uplift of the whole support into this. For sure in terms of the relief work currently in Tai Po, please, if there are any investors, because [Foreign language] 。 Thank you.
Thank you. Are there any further questions from the floor, please? If there are no more questions, we will conclude the Q&A session and see if any topics you would like to raise here.
Yeah, quite a few questions actually in relation to the PERP. The question of sort of any plan, any redemption plan, any restructuring plan, any what do you think and how to settle the high interest, I mean the high coupon rates, perpetual bond. I think I, you know, overall having a comment on this, I think the first priority is actually on the bank loan reduction. The good thing is we have over HKD 61 billion on the pipeline, which is all active projects. I think HKD 61 billion is actually big enough for us to, for FEC to develop, to sell the record in the boat in the coming eight years, ten years, right? We are not in a rush to increase the land bank, the land replenishment.
Of course, we do not rule out that if there is a very attractive, in terms of the cost and all that, we may also enter into, but yeah, we are not in the need. On the other hand, other than this first priority on the bank loan, we actually have to keep a very healthy and also safe level from a bank confidence perspective. I think we have to deal with this first. We know that this is very expensive, but we're trying out to accelerate our projects, get the bank loan matter before, definitely before the perpetual.
Thank you.
Thank you.
Okay, thank you. Ladies and gentlemen, this concludes our investor presentation. Thank you once again for joining us today.