24th Oct 2007 07:00
Macau Property Opportunities Fund24 October 2007 Macau Property Opportunities Fund Limited ("MPO" or the "Company") New Investments of US$43.1m Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited,today announces US$43.1 million of further property investments, comprising: • a well-positioned 10,500-square foot mixed-use redevelopment project on Macau Peninsula with a total investment value of US$26.6 million; and • a number of attractively priced and strategically located individual properties for an aggregate consideration of US$16.5 million Since Admission to AIM, the Company has committed US$191 million orapproximately 101% of its total equity raised and continues to negotiate on afurther eight sites totalling approximately US$450 million in combinedacquisition value. Mixed-Use Redevelopment Key Points: • The 10,500-square foot freehold site is located close to Macau's main historic square and tourist epicentre on Macau Peninsula. • MPO is investing a total of US$26.6 million in the project, comprising an acquisition price of US$15.85 million and an expected redevelopment cost of US$10.75 million. • The property is a key pipeline site presented to investors during the Company's IPO road show. • The Company is planning a mixed-use project for the site incorporating prime retail and entertainment space targeted towards the local retail and tourism market. • The acquisition is being funded entirely out of the Company's existing cash resources, but the Company is seeking debt financing for the redevelopment portion of the project. The property is adjacent to and clearly visible from Senado Square, one of thetop tourist destinations on Macau Peninsula. The square forms part of Macau'sWorld Heritage district which is rich in architectural beauty and significance.The constant and ever-increasing pedestrian traffic in the area has created asought after location for shopping outlets, driving retail property prices andrentals to amongst the highest levels in Macau. It is the current intention ofthe Company to redevelop the property into a six storey building consisting ofprime retail and entertainment space. The acquisition is subject to delivery of vacant possession by the vendors andto some rights of usage by a third party to the basement area of the building.The Company is progressing discussions with the third party with the intentionof coming to mutual agreement during the planning process. Both these factorshave been fully reflected in the final acquisition price of the property. Other Investments The Company has also acquired, in a series of separate purchases, a number ofsmaller individual properties in various strategic locations across Macau,within its defined market segments, for an aggregate consideration of US$16.5million. These properties have been purchased by MPO as part of an ongoing scheme ofacquiring well-located and attractively priced property assets, which theCompany believes offer significant capital appreciation as investment propertiesin their own right or through consolidation, refurbishment or redevelopment. TheCompany will continue to update shareholders on its progress as it acquiresfurther properties under this scheme. David Hinde, Chairman of MPO said: "We are very pleased to have secured thisstrategic site. The acquisition follows a long and complicated negotiationprocess and clearly illustrates the Manager's expertise and commitment to theCompany's stated strategy of acquiring well-positioned assets within targetmarket segments. Furthermore, the Company's niche strategy of purchasing smaller individualproperties on an opportunistic basis, demonstrates the Manager's versatileapproach to sourcing investments which maximise potential returns forshareholders." --Ends-- About Macau Property Opportunities Fund Macau Property Opportunities Fund (MPO), which raised £105 million in a Placingand commenced trading on the Alternative Investment Market of the London StockExchange on 5 June 2006, is a closed-end investment company incorporated inGuernsey. MPO focuses on investing in property opportunities primarily in Macau,but also potentially in the Western Pearl River Delta region and in exceptionalcircumstances, greater China. The Company's investment policy is to provideshareholders with an attractive total return, which is expected to compriseprimarily capital growth, but with the potential for dividends over the mediumto long term. The Manager of MPO is Sniper Capital Limited and the Investment Adviser isSniper Capital Management Limited. About Sniper Capital Limited Sniper Capital is an independent investment manager specialising in propertyinvestment in niche, undervalued and developing markets. The Company'sinvestment strategy is to identify, acquire and develop properties clearlydifferentiated by location, value and sustainability of demand. Sniper Capitalcurrently manages two funds with combined assets of US$250 million. For further information: Website: www.mpofund.com Public RelationsHogarth Partnership LimitedAndrew Jaques / Sarah RichardsonTel: +44 20 7357 9477 Nominated Adviser and Joint BrokerCollins Stewart Europe LimitedHugh FieldTel: +44 20 7523 8325 Joint BrokerShore Capital Stockbrokers LimitedDru DanfordTel: +44 20 7408 4090 Company Secretary & AdministratorHeritage International Fund Managers LimitedMark Huntley / Laurence McNairnTel: +44 1481 716000 ManagerSniper Capital LimitedInvestor ContactTel: +852 2292 6700Email: [email protected] Stock Codes: Bloomberg: MPO LNReuters: MPO.L This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Macau Property