Macau Property Opportunities Fund Limited announces its results for the period ended 31 December 2017. The Company, which is managed by Sniper Capital Limited, develops and invests in property opportunities in Macau.
- MPO’s portfolio value grew 3.4%1 over the 6-month period to US$435.1 million.
- Adjusted NAV rose 3.7% from 6 months earlier to US$258.6 million, translating to US$3.38 (250 pence2) per share.
- IFRS NAV increased by 4.4% over the period to US$134.5 million.
- MPO’s share price rose 17% to 184 pence, representing a 26.4% discount to Adjusted NAV per share.
- Gross borrowings stood at US$172.3 million, equating to an improved loan-to-value ratio of 38.3%.
- Cash balance was US$15.3 million, of which US$3.5 million was pledged as collateral for credit facilities.
- One of the two loan facilities for Estrada da Penha was extended, with improved terms, by two years to mature in December 2019.
The average monthly rent rose 12% over the 6-month period to US$2.54 per square foot while occupancy stood at 61% as at 31 December 2017.
Individual units at One Central Residences
One of the three remaining individual units was sold at above valuation for US$3.7 million in October.
A 1,620-square-foot apartment was sold in August for US$1.2 million. With the rising popularity and demand for small apartments, the Company is establishing the possibility of subdividing the larger units into studio apartments and one- and two-bedroom apartments.
Estrada da Penha
Active marketing is being carried out to divest this exclusive asset.
The Company has entered into a conditional sale to dispose of the site for US$102.3 million. The sales price represents a premium of c. 14% to the latest valuation of c. US$90.0 million and a gain of 541% over the acquisition cost of US$15.96 million. The transaction, which is subject to shareholder approval at an Extraordinary General Meeting to be held on 19 March 2018, is expected to complete by the end of March 2018.
Chris Russell, Chairman of Macau Property Opportunities Fund, says, “We are wholly committed to our divestment strategy and are taking full advantage of the current recovery in sentiment to market our assets to targeted investor groups.”
He adds, “Macau’s long-term prospects remain compelling with its improved connectivity and significant economic benefits promised by the territory’s involvement in large-scale development plans by the Chinese government.
“However, we are mindful that Macau’s property market is still in the relatively early stages of a recovery, which is likely to take further time to gather solid momentum.”
For more information, please visit www.mpofund.com for the Company’s full Interim Report 2018.
- Calculation was adjusted to reflect like-for-like comparisons to 31 December 2017 due to the divestment of properties during the period.
- Based on the US Dollar/Sterling exchange rate of 1.351 as at 31 December 2017.