News

Sniper Capital secures new debt deals for Macau Property Opportunities Fund

Successful debt negotiations generate US$33 million cash for US$500 million flagship fund
Hong Kong/Macau, 10 September 2014 – Asian property investment manager Sniper Capital today announces that it has negotiated an additional US$33 million of free cash for its Macau Property Opportunities Fund (MPO) through a combination of new loan facilities and restructuring of existing debt covenants.
US$30 million was generated with Hang Seng Bank (a principal member of the HSBC Group), with US$13 million being via a top-up facility against MPO’s premium luxury tower The Waterside located at Macau’s exclusive One Central Residences, and a further US$17 million through the restructuring of an existing loan facility. The balance of US$3 million was secured via the refinancing of a luxury private house in Macau’s prestigious neighbourhood of Penha Hill.

MPO’s total cash balance following these debt deals rises to over US$55 million. Total debt obligations increase to US$142 million – a still conservative overall loan-to-value of c. 24%.

Tom Ashworth, Principal of Sniper Capital, commented: “These successful debt negotiations demonstrate the strength of Sniper Capital’s banking relationships and capabilities as a focused and efficient manager of real estate assets in Asia. We will continue to employ proactive strategies which enhance value for shareholders across all our funds.”

Further details
Top-up and restructuring of One Central Residences loan
The new top-up facility will mature in September 2020, with interest charged at 2.35% over HIBOR per annum. The removal of an early prepayment requirement also releases all sales proceeds from individual units (subject to maintaining a total loan-to-value ratio of not more than 50%).
Refinancing for luxury private property, The Green House
Loan principal increases to US$9 million, from US$6 million, with an interest rate of 6-month HIBOR plus 3.2% per annum. Debt maturity has been extended by three years to June 2017.

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