REG - Macau Prop Opp Fund - Investor Update H2 2025

Macau Property Opportunities FundAnnouncement

26/01/2026 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260126:nRSZ2372Qa&default-theme=true

RNS Number : 2372Q  Macau Property Opportunities Fund  26 January 2026

Macau Property Opportunities Fund Limited

 ("MPO" or the "Company")

 

Investor Update H2 2025

 

KEY DATA

 Inception date            5 June 2006
 Exchange                  London Stock Exchange
 Domicile                  Guernsey
 Market capitalisation      £4 million
 Portfolio valuation       US$84.4 million(1)     -3.2%

                                                  (vs 30 June 2025)
 Adjusted NAV              US$32.7 million(1)
 Adjusted NAV per share    US$0.53 / 39p²         -13.2%

                                                   (vs 30 June 2025)
 Share price               6.5p                   -73%
                                                   (vs 30 June 2025)
 Discount to Adjusted NAV  83%                    56%

                                                   (vs 30 June 2025)
 Cash balance              US$4.4 million(1) (3)
 Total debt                US$53.2 million(1)
 Loan-to-value ratio       60 %

(1) As at 30 September 2025

(2) Based on a US$/£ exchange rate of 1.346 as at 31 December 2025

(3) Restricted by lender

All other data are as at 31 December 2025

 

Executive Summary

In December 2025, the Company's proposed £1.7 million placing was
unsuccessful, resulting in insufficient working capital to meet a Penha
Heights loan repayment. As a result, the Penha Heights loan facilities are
currently in default and the Company's other lending banks have intensified
loan monitoring. Furthermore, these financial challenges have contributed to a
negative impact on the Company's share price.

The Company continues to engage with lenders to negotiate loan extensions and
restructuring to allow time to stabilise its capital structure and accelerate
asset disposals.

Despite a continued downturn in Macau's residential market, the Company's
divestment programme progressed in H2 2025 with the sale of nine Waterside
units and the one remaining Fountainside Villa. Market conditions were seen to
marginally improve due to recent government measures, including reduced stamp
duty charges and more relaxed mortgage lending rules.

 

Portfolio Overview

The Waterside

In H2 2025, the Company sold an additional nine units at The Waterside. Recent
transactions showed slightly improving trends, with units transacting at
narrower discounts to valuation compared to earlier quarters. The Company is
negotiating the sale of additional units with several potential purchasers.
The Company's available cash resources continue to be restricted by its lender
to satisfy covenant conditions, but further cash is expected to be released
once further sales are successfully completed.

 A total of 45 units have been sold since the divestment programme began in
mid-2022, with 14 units remaining available for sale at the end of 2025. With
a number of purchasers expressing a preference for tenanted units, some
remaining units, covering approximately 37% of the remaining gross floor area,
are let out on short-term leases.

 

The Fountainside

The Company sold the final villa at The Fountainside together with its
car-parking space. Having now sold all the villas in the project, the Company
is focused on the three reconfigured apartments and two car-parking spaces,
the final units available for sale. Sales efforts for these apartments has
been delayed by continuing challenges in obtaining approvals for newly built
parking spaces as part of the reconfiguration exercise. The Company has held
multiple discussions with representatives of the Land and Urban Construction
Bureau (DSSCU) to address this and the requested documentation for final
review was submitted to DSSCU in December 2025 with feedback by end Q1 2026.

 

Penha Heights

Penha Heights, located at the top of the exclusive and historic Penha Hill,
represents among the top homes in Macau. The Company's marketing strategy
leverages the regional network of ultra-high-net-worth clients maintained by a
Hong Kong-based specialist agency. The property is also being promoted as two
separate residences, in line with its land titles, to make the pricing more
accessible than selling it solely as a single asset.

 

Following the unsuccessful fund raising, the Company is actively engaged with
lenders exploring a variety of options, including asset sales and loan
restructuring. Marketing initiatives have generated consistent interest and
property viewings, though these have not yet resulted in firm offers, although
encouragingly, some traction has been achieved recently with a prospective
purchaser. The Company believes that slightly improved sentiment in Macau may
provide better opportunities for achieving a divestment.

 

Property

In the second half of 2025, Macau's property market showed some signs of
recovery. After a first half characterised by stabilised transaction volumes,
but falling prices, the market further stabilised later in the year, with both
transactions and prices recovering. Q3 residential transaction volumes rose
19.2% QoQ to 955 units, despite a YoY drop of 19%. Residential unit
transaction prices in Q3 also increased by 8% QoQ, while decreasing 14% YoY.

 

Developers have been using more aggressive pricing strategies to clear
pre-sale inventories, drawing buyers toward new projects with attractive
discounts. This has diverted demand away from second-hand homes, prompting
sellers in the secondary market to cut prices to close deals. Consequently,
the secondary market experienced steeper declines in both transactions and
prices than the broader property market. By the end of October 2025,
transaction volumes were down 11.8% YoY, while prices had fallen 17.8% YoY.

 

Luxury Market Dynamics

In the luxury residential segment, transaction volumes have tracked the
overall market weakness. Luxury residential units spanning over 150 sqm
totalled 46 units in Q3 2025, representing a YoY decrease of 19%, but a QoQ
increase of 48%, possibly indicating early signs of stabilisation in the
premium segment. High-end buyers remain cautious after recent price declines
and continue to wait for clearer recovery signals. Mainland investor demand is
constrained by capital controls and financing scrutiny, while local income
growth outside gaming is limited. The luxury segment is stabilising rather
than rebounding, with activity improving selectively since the recent
government measures, but buyers retaining strong bargaining power.

 

Government Measures to Revitalise Property Sector

In its 2026 Policy Address, the Macau government unveiled several initiatives
aimed at revitalising the property market. The first MOP6 million of a
residential property's purchase price will now be exempt from stamp duty, up
from the previous threshold of MOP3 million. In addition, mortgage rules are
being eased, with the permitted loan-to-value ratio raised from 70% to 80%,
making it easier for buyers to obtain financing.

 

Although industry participants generally view these steps positively, many
believe they will fall short of fully restoring market momentum. The measures
are expected to lift transaction activity for entry level units; however,
while they may help stabilise prices and curb further declines, they are
unlikely to spark a strong rebound in property values without additional
stimulus.

 

Economy, Tourism & Gaming

After a slow start in the first half of 2025, Macau's Gross Domestic Product
(GDP) powered to 8.0% growth YoY in the third quarter of 2025, fuelled
primarily by a 13.6% rise in visitor arrivals. For the first nine months of
the year, GDP grew 4.2% YoY to 88.4% of pre-pandemic levels. Analysts have
forecasted full year GDP growth for the territory of 5.4% YoY

 

2025 proved to be a record-breaking year for visitor arrivals in Macau.
Full-year arrivals of 40.06 million have now established a new all-time high
for the territory, exceeding the previous peak of 39.4 million set in 2019 by
1.6% and surpassing 2024 arrivals by 14.7%.

 

In the second half of 2025, in line with the surge in visitor arrivals, gaming
revenue saw several record-setting double-digit year-on-year growth months.
October 2025 recorded MOP24.09 billion (c.US$ 3 billion), the best monthly
performance since January 2020, representing a 15.9% YoY increase. As at
November, the year-to-date gaming revenue was approximately MOP226.5 billion
(c.US$ 28 billion), which is 8.6% higher than the first 11 months of 2024.

Outlook

Despite global and regional volatility, Macau's headline economic numbers have
demonstrated the territory's resilience. Growth forecasts for full year 2026
GDP have ranged from 2% to 5%, which translates to approximately 93% of 2019's
pre-pandemic levels.

 

Despite strong economic fundamentals and continued growth, Macau's economic
activity has been primarily concentrated in the tourism and gaming sectors.
There has been limited spillover to the luxury residential market, which
remains subdued. High-end buyers remain cautious following years of price
declines and continue to wait for clearer recovery signals.

 

In light of these challenges, the Company will continue to vigorously progress
its divestment strategy, while working with lenders to stabilise its financial
position and execute its divestment programme. The Government's comprehensive
policy package, combined with strong economic fundamentals, creates a more
supportive environment for residential property sales in 2026.

 About Macau Property Opportunities Fund

Premium listed on the London Stock Exchange, Macau Property Opportunities Fund
Limited (http://mpofund.com) is a closed-end investment company registered in
Guernsey and is the only quoted property fund dedicated to investing in Macau,
the world's leading gaming market and the only city in China where gaming is
legalised.

Launched in 2006, the Company targets strategic property investment and
development opportunities in Macau. Its current portfolio comprises prime
residential property assets.

The Company is managed by Sniper Capital Limited (http://snipercapital.com/) ,
an Asia-based property investment manager with an established track record in
fund management and investment advisory.

 

Stock Code

London Stock Exchange: MPO

 

LEI

213800NOAO11OWIMLR72

 

 

For further information:

 

Manager

Sniper Capital Limited

Group Communications

Tel: +853 2870 5151

Email: info@snipercapital.com (mailto:info@snipercapital.com)

 

Corporate Broker

Panmure Liberum

Darren Vickers

Tel: +44 20 3100 2222

 

Company Secretary & Administrator

Ocorian Administration (Guernsey) Limited

Kevin Smith

Tel: +44 14 8174 2742

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  PFUAKNBBOBKDPDB



            Copyright 2019 Regulatory News Service, all rights reserved