TCA.L Regulatory News (TCA)

26 Sep 2007 07:02

Speymill Macau Property Company PLC26 September 2007 26 September 2007 Speymill Macau Property Company plc ("MCAU" or the "Company") Conditional US$ 187 million Residential Investment Speymill Macau Property Company plc (AIM: MCAU), the Macau focused propertyinvestment company listed on AIM, is pleased to announce that, on 20 September2007, it entered into a conditional forward funding arrangement with a fundmanaged by LaSalle Investment Management ("LaSalle" or the "Developer") tofinance the development of a luxury residential tower in the Bel-Lagodevelopment located on Lot C9 in the Nam Van reclamation area. At completion of the development, the Company has committed to purchase 166residential units, ranging in size from approximately 700 square feet for1-bedroom units to approximately 4,500 square feet for 6-bedroom triplexes and95 car parking spaces in Tower 4 of the Bel-Lago. The total combined marketablegross floor area (GFA) of the residential units will be close to 300,000 squarefeet. The investment is conditional upon the Developer meeting certain milestonesincluding receiving the necessary government permits and building plan approvalswithin certain time frames. If these milestones are not achieved, there is nofinancial commitment binding on the Company. The site location has beenearmarked for regeneration by the government to produce a unique high riseresidential area in location by the Nam Van Lake. Completion of the developmentis scheduled for December 2010. Grouped into two main structures with a total of 4 towers, Bel-Lago aims to be alandmark luxury residential development with a clubhouse and car park. Whencompleted, Bel-Lago will be 50 storeys above ground, offer over 500 units, closeto 400 parking lots, a clubhouse and facilities such as swimming pool, gym andspa. Towers 1 and 2 will overlook Nam Van Lake onto central Macau, while Towers3 and 4 will offer views across the South China Sea (Sai Van Lake) to Taipa inthe south. There will be greenbelt views to the northwest and to the south. The details regarding the development, set out above, are conditional upon finalbuilding permits and are subject to change. The total consideration payable by the Company for the units and car parkingspaces in Tower 4 is HK$ 1,455,394,700 (US$ 187 million), of which 25%represents the forward funding element that will be settled on the achievementof certain pre-agreed milestones and the remainder will become payable oncompletion of the development. To the extent that the Company chooses to retainthe apartments, the Company's manager is satisfied that it will be able tosecure bank borrowings for the outstanding balance of the price payable. Commenting on the investment, Larry Kearns, the Company's chairman, said, "Weare very pleased with our investment in the Bel-Lago project as we believe it isset to deliver a new standard for luxury residential apartments in Macau whencompleted. We are looking forward to working with LaSalle on this project. Wecontinue to be strong believers in the growth of the Macau property market and Iwould like to take the opportunity to thank our investors for their continuedsupport of the Company and its strategy." For further information, please refer to the Company's website at www.mcau.co.im Nominated Adviser:Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000Azhic Basirov / Siobhan Sergeant Notes to editors: Speymill Macau Property Company plc ("MCAU" or the "Company") MCAU was established to invest primarily in high quality residential propertiesin Macau. The Company will also pursue selective commercial investments tocapture expected ancillary Macau service sector growth. The Company listed on AIM on 17 November 2006 raising US$80 million in a placingon admission. A second fundraising of US$70 million was completed in May 2007. The Company's objective is to provide shareholders with an attractive overallreturn to be achieved primarily through long-term capital growth. Advisors to the Company The Manager is Speymill Property Managers Limited, a wholly owned subsidiary ofSpeymill Group plc (AIM: SYG). The Investment Adviser is Speymill Property Managers (Far East) Limited, awholly owned subsidiary of the Manager. The Property Adviser is Avila Capital Limited. The Manager, Investment Adviser and Property Adviser are responsible forsourcing and structuring investment opportunities, post-acquisition managementand corporate governance. LaSalle Investment Management ("LaSalle") LaSalle is a member of the Jones Lang LaSalle group (NYSE: JLL), a leadingglobal real estate investment manager, with more than US$45 billion of assetsunder management, of which US$4.4 billion is invested in direct property acrossAsia. LaSalle is active across a range of real estate capital and operatingmarkets including private and public, debt and equity. LaSalle is authorised andregulated for investment business by the Financial Services Authority in theUnited Kingdom and by the Securities and Exchange Commission in the UnitedStates. www.lasalle.com This information is provided by RNS The company news service from the London Stock Exchange