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LONDON (Alliance News) - Macau Property Opportunities Fund Ltd Monday said it has secured a USD28.4 million loan facility for residential development The Fountainside, a refinancing deal that has generated USD15.5 million of net cash after the repayment of a USD12.9 million existing loan.
The fund said its cash balance after the refinancing will rise to about USD22 million.
All of The Fountainside's pre-sold units will be released as collateral, meaning it will get about USD19 million of unrestricted sales proceeds once the units are handed over to the buyers. Proceeds from units that haven't been sold will then be used to repay the new loan.
Once fully drawn down, the project's loan-to-value ratio will rise to 50% from the current level of 17%, the fund said.
Interest on the new loan, which has a three-year term to 2017, will be charged at 3-month HIBOR plus 3% a year. Repayment is based on a half-yearly instalment after 12 months and 50% at maturity, the fund said.
The fund's shares were up 0.8% at 216.62 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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