Macau Property Share News (MPO)

LONDON (Alliance News) - Macau Property Opportunities Fund Ltd said on Wednesday its adjusted net asset value rose 3.7% in the six months to the end of December.

The closed-end investment company focusing on Macau said its adjusted net asset value as at December 31 was USD3.38 per share, up from USD3.26 as at June 30, while its IFRS net asset value rose by 4.4% to USD1.76 per share from USD1.69 at the end of June.

Macau Property said its portfolio value rose 3.4% to USD435.1 million over the 6 months to December 31, and the fund expects a further recovery in Macau property values.

This came against a backdrop of growth in 2017 in Macau, with gross domestic product forecast to have risen 13.4% year-on-year, and a further increase of 7.0% expected in 2018, despite government anti-speculation measures.

Occupancy at The Waterside property stood at 61% as at the end of December, while average monthly rent rose 12% over the period to USD2.54 per square foot.

"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. 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," said Chairman Chris Russell.

Shares in Macau Property Opportunities Fund were down 1.1% at 199.86 pence on Wednesday.