Macau Property Opportunities Fund MPO Completes Sale of Senado Square for HK$800m (9548I)
March 26 2018 - 10:00AM
UK Regulatory
TIDMMPO
RNS Number : 9548I
Macau Property Opportunities Fund
26 March 2018
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: doris.boo@snipercapital.com
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
This information is provided by RNS
The company news service from the London Stock Exchange
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