REG - Macau Prop Opp Fund - Change to the Calculation of the Management Fee <Origin Href="QuoteRef">MPO.L</Origin>

Macau Property Opportunities FundAnnouncement

27/02/2015 07:13

RNS Number : 0256G
Macau Property Opportunities Fund
27 February 2015
27 February2015
Macau Property Opportunities Fund Limited
("MPO" or the "Company")
 
Change to the Calculation of the Management Fee
The Annual Report & Accounts for the period ended 30 June 2014 explained that it was necessary to reflect deferred tax when calculating the IFRS NAV and Adjusted NAV of the Companyto comply with the IFRS Interpretations Committee's recent clarification of the requirements of IAS 12 Income Taxes. The Board is of the opinion that deferred tax will not be paid considering the intention of the Company to sell the shares of the special purpose vehicles holding the relevant investment properties, rather than the underlying property assets themselves. Without taking into account this change to the accounting standard, and the consequential effect on performance fees payable to the Manager, Sniper Capital Limited, both the IFRS NAV and Adjusted NAV would have been US$19.6 million higher.
The Board have agreed that the basis on which the Management Fee is calculated should reflect the Adjusted NAV without this adjustment, subject to a claw-back, and have entered into a side letter with the Manager to reflect this amendment, with effect from 1 July 2014.
Under Listing Rule 11.1.10, this amendment to the calculation of the Management Agreement constitutes a related party transaction and requires confirmation from the Company's Sponsor, Liberum Capital Limited ("Liberum"), that the terms of the proposed arrangement are "fair and reasonable" to the Company's shareholders. The Board are pleased to confirm that Liberum have provided this confirmation.
For the six months to 31 December 2014, the Investment Management Fee calculated on the revised basis was US$4,048,935, compared to US$3,806,640, calculated on the original basis.
Other fees affected by this accounting adjustment have been similarly amended.
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About Macau Property Opportunities Fund
Macau Property Opportunities Fund Limited is a closed-end investment fund registered in Guernsey. 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 and Mainland China's western Pearl River Delta. Its current US$548 million portfolio comprises a mix of well-positioned residential and retail property assets.
The Fund is managed by Sniper Capital, 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
Public Relations
MHP Communications
Simon Hockridge / Andrew Jaques/ James Morgan
Tel: +44 20 3128 8100
Manager
Sniper Capital Limited
Tel: +65 6222 1440 (Investor Contact)
Tel: +853 2870 5151(Fund Advisor)
Email:info@snipercapital.com
www.snipercapital.com
Corporate Broker
Liberum Capital
Chris Bowman / Richard Bootle
Tel: +44 20 3100 2228
Company Secretary & Administrator
Heritage International Fund Managers
Mark Huntley / Laurence McNairn
Tel: +44 14 8171 6000
Stock Codes:
Bloomberg: MPO LN
Reuters: MPO.L

This information is provided by RNS
The company news service from the London Stock Exchange
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