LONDON (Alliance News) - Macau Property Opportunities Fund Thursday reported a drop in its net asset value in the first half of 2015, as it said the property market was hit by a slowdown in the Chinese gaming sector.
The closed-ended fund which invests in the property market in Macau and China's Pearl River Delta, said that its net asset value fell 27% to USD155.4 million in the six months ended June 30, equating to USD2.00 per share.
It said that a slowdown in Macau's gaming sector has lowered the company's portfolio value by "adversely affecting sentiment in the property market". Occupancy at The Waterside luxury residential complex dropped to 43.9% due to falling VIP gaming growth and the slowdown in Macau's economy, Macau Property said.
"In its ninth year of operation, a recent slowdown in Macau's gaming sector has seen a pullback in the company's portfolio value. While we maintain a cautious near-term outlook, we must not lose sight of the city's fundamental long-term growth drivers. As Macau transforms itself into a more diversified and stronger economy, the company's properties remain well-positioned for the next phase of growth," Chairman David Hinde said in a statement.
Hinde added that he is retiring from his role within the company, to be succeeded by Non-Executive Director Chris Russell.
Shares in Macau Property were trading flat at 159.50 pence Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Macau Property (MPO)