Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 44 MANAGEMENT DISCUSSION AND ANALYSIS Australia Melbourne West Side Place is a mixed-use residential development located in the CBD of Melbourne. This development is expected to have a residential saleable floor area of approximately 2.2 million sq. ft. from 4 towers with approximately 3,000 apartments and a total GDV of HK$10.8 billion. The development will comprise two hotels, including one under the Group’s Dorsett brand with approximately 300 hotel rooms located in Tower 3, and another hotel to be operated by Ritz-Carlton with approximately 250 hotel rooms located at the top of Tower 1. Building on the strong response on the pre-sales of Towers 1 and 2 in June 2016 and of Tower 4 in June 2017, the Group launched the pre-sales of Tower 3 in May 2018. Units worth HK$9.5 billion in West Side Place were pre-sold as at 31 March 2019, representing approximately 88% of a total expected GDV of the entire development of HK$10.8 billion. With Towers 1 and 2 expected to be completed in FY2021 and the remaining two towers to be completed in each of FY2022 and FY2023, this development is expected to generate significant cashflow and earnings for the Group in the coming few years. Following the successful launch of the various stages of West Side Place, the Group has replenished its pipeline in Melbourne post year-end by securing a development site on Bourke Street, which is in Melbourne CBD near the West Side Place development. The property currently has approval to be redeveloped into a residential project with total saleable floor area of approximately 552,000 sq. ft.. Completion of the acquisition is expected to take place before 31 December 2019, and is subject to certain obligations the vendor has to fulfill. Perth The Towers at Elizabeth Quay is a two-tower mixed- use development comprising residential apartments of approximately 371,000 sq. ft. in saleable floor area, a luxury Ritz-Carlton hotel with more than 200 rooms, approximately 15,000 sq. ft. of commercial or retail area as well as other ancillary facilities. The first tower of the two within this development was partially completed with HK$463 million worth of units having been delivered up to 31 March 2019. The remaining units of that tower and the second tower are due for completion during FY2020. As at 31 March 2019, its pre-sales value was approximately HK$1.6 billion (excluding units delivered up to 31 March 2019), representing 73% of the expected GDV of the remaining portion of the development. The Perth City Link is a major project being undertaken by the Western Australian Government to reconnect the Perth CBD and the entertainment district. Perth Hub is the first phase of the Perth City Link project. It is a mixed-use development located adjacent to the Perth Arena representing Lots 2 and 3A of the Perth City Link project, featuring 314 residential apartments and approximately 260 hotel rooms to be operated by Dorsett. It was launched for pre-sales in October 2018, with pre-sales value of HK$250 million as at 31 March 2019, representing 29% of the expected GDV. Completion of the development is expected in FY2022. Having been selected as the preferred proponent to develop Lots 3B, 6 and 7 of the Perth City Link project in May 2017, which is a continuation of the development stemming from Perth Hub, the Group has secured these land plots during the year. These three lots will be home to a range of boutique apartments and an integrated retail, entertainment, commercial and hospitality complex. This project is currently under planning stage. West Side Place, Melbourne The Towers at Elizabeth Quay, Perth