7th Oct 2019 09:57
(Alliance News) - Macau Property Opportunities Fund Ltd said Monday its net asset value dropped over its recently ended financial year, as the value of its portfolio declined in a "challenging" year.
The closed-end investment company focused on Macau said its net asset value as at June 30 was USD2.12 per share, down 17% from USD2.82 the same date the year before.
Meanwhile, its portfolio valued declined by 7.7% year-on-year to USD311.1 million from USD338.4 million, due to the Macau property market experiencing low transaction levels on ongoing economic headwinds, tighter capital controls and lending restrictions.
Macau Property Opportunities said that market conditions have impeded its process of divesting its portfolio holdings, as it continues discussions with multiple parties looking for prime real estate assets in Macau and the Greater Bay Area.
Occupancy at The Waterside property was 55% at the end of June, down from 70% the year before, due mainly to a slowdown in the VIP gaming market as a result of stricter VIP gaming regulations.
Meanwhile, demand for high-end residential properties such as The Fountainside was muted in the fund's financial year, as a result of stricter anti-speculation mortgage policies introduced in 2018.
"The past year has unquestionably been challenging. We are also aware of the company's time constraints and the expectations of our shareholders. We remain determined and pragmatic in our approach and have full confidence that the manager can complete the divestment process," said Chair Mark Huntley.
"In the meantime, we are carefully conserving our resources by continuing to proactively lower our cost base wherever possible," Huntley added.
Shares in Macau Property Opportunities were down 5.0% at 124.00 pence on Monday.
By Dayo Laniyan; [email protected]
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