REG - Macau Prop Opp Fund - Update on Macau Property Market and Divestment

Macau Property Opportunities FundAnnouncement

16/04/2024 07:00

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RNS Number : 6942K  Macau Property Opportunities Fund  16 April 2024

 

16  April 2024

 

 

Macau Property Opportunities Fund Limited

("MPO" or "the Company")

 

Update on Macau Property Market, Divestment Programme and Repayment of Debt

 

Macau Property Opportunities Fund Limited is pleased to provide an update on
recently announced relaxations to Macau's long-standing property
anti-speculation measures, the Company's portfolio divestment programme and
debt repayment progress.

 

Changes to Property Cooling Measures

The Macau government has announced unprecedented relaxation measures to its
real estate anti-speculation policies which have been in place for over a
decade. These measures, which follow a similar move by Hong Kong in February,
include the axing of prevailing special stamp duty requirements and improving
loan-to-value ("LTV") ratio ceilings for mortgage loans.

 

Under the proposed amendments, all existing anti-speculation measures will be
removed, including:

 

o  Stamp duty levied on properties resold within 24 months after being
purchased

o  An extra 10% duty imposed on foreign buyers

o  An 5% extra duty on additional ownership

 

The maximum mortgage LTV ratio ceiling for foreign buyers has also been
increased from c.40% to 70%.

 

These policy changes are welcomed by the Company which is likely to benefit
from an increase in interest for luxury residential properties which
constitute the remainder of MPO's portfolio exposure.

 

The proposed policy amendments are subject to formal ratification by Macau's
Legislative Assembly and are expected to become effective in the near future,
following a fast-tracked approval process.

 

 

Divestment Programme and Debt Position Update

 

The Company is also pleased to provide an update on its divestment progress
and debt position, following the most recent information provided to
shareholders in its Interim Results in early March.

 

Since the end of 2023, MPO has successfully divested a further six units in
The Waterside worth a combined gross value of HK$139.7 million (c.US$17.9
million.) This brings the total number of units divested at The Waterside
since the programme commenced to 24, raising a total of HK$525.0 million
(US$67.1 million) in gross proceeds. 35 units remain available for sale.

 

While negotiations are ongoing in an improving market, no further sales have
as yet been secured at The Fountainside or Penha Heights.

 

Following the completion of these latest divestments, the Company's total debt
will fall to c. US$79.3 million from US$96.5 million, with its corresponding
loan-to-value ratio declining to c.47% from c.51%.

 

The Manager continues to focus on securing further asset sales to reduce debt
further and meet all the Company's financial obligations.

 

 

- End -

 

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

Liberum Capital

Darren Vickers / Owen Matthews

Tel: +44 20 3100 2234

 

Company Secretary & Administrator

Ocorian Administration (Guernsey) Limited

Kevin Smith

Tel: +44 14 8174 2742

 

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