Last checked at 
24 Jun 2010 07:00
Macau Property Opportunities Fund Limited
("MPO" or the "Company")
Loan Facility Secured for
First Redevelopment Project
Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, is pleased to announce that it has entered into a credit facility arrangement for up to HK$105 million (c.US$13.5 million) with Banco Weng Hang S.A., one of Macau's leading local banks.
The credit facility will be used to finance the redevelopment of Rua da Penha, MPO's first residential redevelopment project in Macau and to partially refinance the original cost of acquisition of the property.
Drawdown of the loan will be subject to usual conditions, including agreement of final documentation. The facility is non-recourse to MPO and is for a term of approximately two years to July 2012, with the first drawdown to be made no later than 22 September 2010. Interest will be charged at three-month HIBOR plus 1.65% per annum. With the agreement of this loan facility, Rua da Penha is now considered fully funded.
The Company continues to adopt a highly measured cash management policy, retaining a strong and prudent balance sheet. As at 31 May 2010, the Company had a cash balance equivalent to approximately US$32.5 million. MPO's current loan-to-value, inclusive of cash balances, equates to 23.76%. Following the full drawdown of this latest loan, this will increase to 27.68%.
David Hinde, Chairman of MPO said: "Successfully securing this competitively priced facility for the Company's first redevelopment project is a testament to MPO's strong relationships in the local financial community, and will enable the Manager to continue to effectively execute its investment and development strategy."
Further details
Rua da Penha
The redevelopment programme for Rua da Penha, a niche residential project targeted towards local Macau residents, commenced in March this year. The Company is now preparing for the marketing and public sales campaign expected to be launched later this year. The project's estimated completion date is 2011.
This unique eight-storey apartment block, which will contain around 40 units totalling 80,000 square feet, is located in the UNESCO-designated "Historic Centre of Macao" and is designed to reflect the vicinity's rich heritage.
Banco Weng Hang S.A.
Founded in 1937, Wing Hang Bank was listed on The Stock Exchange of Hong Kong Limitedin 1993. Banco Weng Hang S.A., a subsidiary of Wing Hang Bank, has been operating in Macau since 1941 offering a wide range of banking services. As at the end of 2009, the Group has total assets of over HK$147.1 billion (c. US$18.8 billion).
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About Macau Property Opportunities Fund
Macau Property Opportunities Fund Limited, which raised £105 million in a placing and commenced trading on AIM in 2006, is a closed-end investment fund registered in Guernsey. The Company's investment policy is to provide shareholders with an attractive total return through investing in property opportunities in one of the world's fastest growing and most dynamic regions - Macau and the Western Pearl River Delta of Southern China.
The Fund is managed by Sniper Capital Limited, an independent investment manager that specialises in property investment opportunities in niche, undervalued and developing markets.
For further information:
Website: www.mpofund.com
Public Relations
Hogarth Partnership Limited
Simon Hockridge / Andrew Jaques
Tel: +44 20 7357 9477
Nominated Adviser & Sponsor
Collins Stewart Europe Limited
David Yovichic / Dominic Waters
Tel: +44 20 7523 8361 / +44 20 7523 8473
Company Secretary & Administrator
Heritage International Fund Managers Limited
Mark Huntley / Laurence McNairn
Tel: +44 1481 716000
Manager
Sniper Capital Limited
Daisy Tang, Corporate & Investor Communications
Tel: +852 2292 6700
Email: info@snipercapital.com
www.snipercapital.com
Stock Codes:
Bloomberg: MPO LN
Reuters: MPO.L