The successful disposal represents a 541 per cent gain over the acquisition cost and an internal rate of return of 20 per cent.
Real estate fund manager, Sniper Capital Limited is pleased to announce the successful divestment of Senado Square, a 70,000 square foot retail development project in Macau. The divestment price was in excess of the asset’s latest valuation and is a major milestone in Sniper Capital’s strategy of maximising value and outcomes for its investors.
The site, located within the prime UNESCO-listed heritage district of downtown Macau, was sold to a local developer for HK$800 million (c. US$102 million) by Sniper Capital’s London-listed Macau Property Opportunities Fund.
The sale price represents a circa 14 per cent premium to the property’s valuation and a gain of 541 per cent over the acquisition cost of HK$124.8 million (US$15.9 million) in 2007. This translates to a return on investment of 469 per cent and an internal rate of return of 20 per cent.
The sale of Senado Square exemplifies Sniper Capital’s commitment to maximise portfolio exit values and return cash to shareholders of Macau Property Opportunities Fund.
Sniper Capital Principal Mr Tom Ashworth said, “The sale of Senado Square – at a significant premium to valuation – adds to Sniper Capital’s strong track record of successful divestments and asset stewardship. It is an excellent example of our ability to stay the course and add value to assets to achieve a great outcome for our investors.”
The Fund’s remaining properties all command prime positions, including its flagship residential asset The Waterside, a premium luxury en-bloc tower located in Macau’s preeminent development, One Central Residences.
“We remain confident in the appeal these properties hold to investors seeking value opportunities in one of Asia’s most compelling and attractively positioned property markets,” added Mr Ashworth.
Sniper Capital Principal Mr Martin Tacon said, “We were an early entrant into Macau and have been investing and developing in this market since 2004 when the international casino operators first opened their doors. Our first-mover advantage and local presence have enabled us to secure some of the best property assets in Macau and deliver tremendous value for our investors.
“Today, the Sniper Capital Group manages and advises on a diverse range of real estate assets worth over US$600 million across Asia, the UK and Southern Europe. We apply our thematic investment philosophy across all our target markets, identifying unique and undervalued opportunities, where we can deliver attractive returns to our investors.
“Our experience and success in Macau and southern China have given us the team and platform to continue to identify emerging trends and themes across a wide range of property markets. We are currently working on some excellent opportunities to strategically deploy capital and add value to real estate assets.”
Sniper Capital launched Macau Property Opportunities Fund in 2006 – the first and only Macau property fund listed on the London Stock Exchange. Since then Macau, the only legal gaming jurisdiction on Chinese soil, has rapidly transformed into the world’s largest gaming market with gross gaming revenues in 2017 growing by circa 19 per cent to US$33.2 billion. Driven by China’s rapidly emerging middle class population, this number is expected to exceed US$60 billion by 2022.
Today, Sniper Capital manages four Macau-focused funds – three of which are dedicated to sustainable heritage projects in the historically rich vicinity of Taipa Village. Over the past decade, Sniper Capital has made over 20 acquisitions in Macau, generating IRR’s of 20 per cent and above for its investors.