Macau Property Regulatory News (MPO)

5 Feb 2009 07:00



Macau Property Opportunities Fund Limited

("MPO" or the "Company")

Loan Facility Signed

On 27 June 2008, Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, announced that it had agreed terms for a club loan facility of HK$642.82 million (c.US$83 million) with a consortium of international and Macanese Banks, led by HSBC. The loan was subject to final documentation and today MPO announces the successful conclusion and signing of the Loan Facility Agreement.

The debt facility will be used to finance the remaining consideration for Tower 6 and the 25 individual units acquired by the Company in One Central Residences, Macau's premier luxury residential development currently under construction. Drawdown of the loan will be upon handover of the project, expected by the end of 2009.

The loan will be secured by means of a first registered legal mortgage over all the residential units owned by the Company at One Central Residences. The term of the loan is to 30 September 2012, with drawdown to be made no later than 30 December 2009. Due to tightening credit conditions, interest will be charged at 3-month HIBOR plus 2.4% per annum, 1% higher than originally indicated. The facility is to be repaid in four half-yearly instalments commencing 30 March 2011, or 15 months from the date of drawdown, whichever is earlier, with 65% of the principal due on the final repayment date. The loan-to-value covenant specified in the documentation is 55%. The Company continues to adopt a highly measured cash management policy retaining a strong and prudent balance sheet with a current cash balance in excess of US$47 million.

In addition to this facility, the Company is in ongoing discussions with respect to construction financing for its development projects. To date, these discussions have proven to be positive and the facilities will be progressed further as planning approvals are received. Further details will be announced in due course.

David Hinde, Chairman of MPO said: "The debt markets have deteriorated significantly since last June when terms of the loan were initially announced and we are very pleased that the Company has successfully secured financing for this exceptional project. This clearly reflects the strong relationship MPO has developed with HSBC and a number of other banking organisations, as well as the premium quality and positioning of One Central Residences."

--Ends--

About Macau Property Opportunities Fund

Macau Property Opportunities Fund Limited, which raised £105 million in a placing and commenced trading on the Alternative Investment Market of the London Stock Exchange 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.

About One Central

One Central is a high-end mixed-use development project combining residential, hotel and retail facilities on a prime waterfront site located on Macau Peninsula. The high quality of design and construction being overseen by the joint venture partners Hongkong Land and Shun Tak Holdings, will ensure that One Central stands well above other existing and currently planned projects in Macau. One Central Residences, the residential portion of the project, comprises seven towers of premium luxury apartments. MPO acquired Tower 6 in November 2006 and subsequently purchased an additional 25 well-positioned units across various other towers. The project is due for completion at the end of 2009.

For further information:

Website: www.mpofund.com

Public Relations

Hogarth Partnership Limited

Andrew Jaques / Anna Keeble

Tel: +44 20 7357 9477

Nominated Adviser & Joint Broker

Collins Stewart Europe Limited

Hugh Field / Andrew Zychowski / Helen Goldsmith

Tel: +44 20 7523 8000

Joint Broker

Shore Capital Stockbrokers Limited

Dru Danford

Tel: +44 20 7408 4090

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