Macau Property Opportunities Fund Ltd - closed-end investment company registered in Guernsey and dedicated to investing in Macau - In talks with Sniper Capital investment manager about impact of Covid-19 on Macau market and unforeseen delay to realising company assets as a result. Notes that manager achieved asset disposals for two remaining individual units in One Central Residences, as well as two additional residential units and a car park space in the Fountainside, at close to external valuations. Nonetheless, Covid-related restrictions have hindered realisation of other key assets.
Fee arrangements with manager were based on pre-Covid assumptions of releasing most assets in 2020 with management fees to be eliminated in 2021, though with incentive fee opportunities for meeting divestment objectives. With no major divestments in 2020, no realisation fees have been paid, and the manager cannot continue to operate in 2021 without a management fee. Further reduced management fee for 2021 of USD100,000 per month, fixed at USD1.2 million for 20201, agreed. Existing 2020 realisation fee arrangements extended into 2021. Maximum amount payable under realisation fees will be reduced by the amount of management fee paid for 2021.
Current stock price: 71.49 pence
Year-to-date change: down 36%
By Anna Farley; annafarley@alliancenews.com
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Macau Property (MPO)