26 March 2018
Macau Property Opportunities Fund Limited
("MPO" or the "Company")
MPO Completes Sale of Senado Square Project for
HK$800 Million (c.US$102 Million)
Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, today announces that it has completed the sale of its Senado Square retail redevelopment project, following the receipt of shareholder approval at an extraordinary general meeting held on 19 March 2018.
The total consideration of HK$800 million (c.US$102 million) represents a premium of c.14% to the property's valuation of HK$703 million (c.US$89.7 million) as at 31 January 2018 and a gain of 541% over the acquisition cost of HK$124.8 million (US$15.9 million) in October 2007. This translates to a return on investment of 469% and an internal rate of return of 20%.
Senado Square is held through a special purpose company that was within the Company's group and the sale has been effected through the sale of the issued share capital of that company.
Completion Terms
Following the receipt by the Company of an initial deposit of HK$15 million (c.US$1.9 million) in February 2018, the remaining sales proceeds of HK$785 million (c.US$100.1 million) have now been deposited by the purchaser into an escrow account in accordance with the terms of the Promissory Transfer Agreement. This amount is expected to be released to the Company in full within 21 days, once the share transfer to the purchaser has been officially registered with the Macau Commercial Registry.
A bank guarantee of HK$80 million (c.US$10.2 million) has been provided to the purchaser for a period of six months after completion, against any debts, taxes or miscellaneous fees and payments that may arise.
Upon the expiry of the bank guarantee, MPO and one of its Macanese subsidiaries will jointly provide a corporate guarantee of HK$20 million (c.US$2.6 million) to insure the purchaser against the same items as above for a further period of six months.
Further Information
The disposal of Senado Square forms part of MPO's commitment to realising asset values and returning cash to shareholders as soon as reasonably practicable.
In line with its divestment strategy, MPO expects to return cash to shareholders of no less than 50% of net profits from the transaction, while maintaining a prudent overall loan-to-value ratio and retaining sufficient working capital for ongoing operations.
The Board is in the process of formulating its recommendation which will be communicated to shareholders via a circular in due course.
Various divestment options for the remaining assets will be considered and carefully assessed, as the Company works towards maximising exit values for shareholders.
About the Project
Senado Square is a retail redevelopment project with a freehold tenure, located in Macau's prime UNESCO-listed shopping precinct. Once completed, the project has the potential to offer c.70,000 square feet of modern retail and F&B space.
All US Dollar figures are based on a US$/HK$ exchange rate of 7.84 as at 19 March 2018.
This announcement contains inside information.
-End-
About Macau Property Opportunities Fund
Macau Property Opportunities Fund Limited is a closed-end investment company registered in Guernsey and is the only quoted property fund dedicated to investing in Macau, the world's largest gaming market and the only city in China where gaming is legalised.
Listed on the London Stock Exchange's main market, it is also a constituent stock of the FTSE All-Share and FTSE SmallCap indices.
Launched in 2006, the Company targets strategic property investment and development opportunities in Macau. After the disposal of Senado Square, its current portfolio comprises mainly prime residential property assets that are valued at US$345.1 million as at 31 December 2017.
The Company is managed by Sniper Capital Limited, an Asia-based property investment manager with an established track record in fund management and investment advisory.
For further information:
Company Registration Number 44813
Website: www.mpofund.com
Manager
Sniper Capital Limited
Doris Boo
Tel: +65 6222 1440
Email: [email protected]
Corporate Broker
Liberum Capital
Richard Crawley / Richard Bootle / Jonathan Wilkes-Green / Henry Freeman
Tel: +44 20 3100 2222
Company Secretary & Administrator
Estera International Fund Managers (Guernsey) Limited
Kevin Smith
Tel: +44 14 8174 2742
Stock Code:
London Stock Exchange: MPO
LEI
213800NOAO11OWIMLR72
