4 Feb 2008 10:56
Speymill Macau Property Company PLC04 February 2008 Speymill Macau Property Company plc ("Speymill Macau" or the "Company") Speymill Macau Achieves 125% Return on Equity in US$160million Disposal Speymill Macau Property Company plc (EPIC: MCAU.L), the Macau focused propertyinvestment company listed on AIM, announces that it has agreed terms for thesale of its interest in 243 residential units and car parking spaces in threetowers of a luxury waterfront development ("Lot U"), which it acquired inDecember 2006 for HK$906.5million (US$116.5million). The sale price will be HK$1.25billion (US$160.3million), representing a 2%premium to the valuation as at 30 June 2007, and will generate a gross profit ofHK$343.6million (US$44.0million), yielding a gross return on the Company'sinvested equity of 125%. The Manager has negotiated a transaction structure thatdeals with the sale of individual towers one at a time following an agreedpayment schedule, generating cumulative net disposal proceeds of HK$615.5million(US$78.9million) to Speymill Macau. The disposal price for Lot U represents an asset value increase relative toacquisition price of 38%, which compares favorably to the overall performance ofthe Macau residential property market since acquisition. The disposal of Lot U enables the Company to realise a substantial profit forshareholders, in a cost and likely tax efficient manner. It also places theCompany in a strong position to pursue other attractive investment opportunitieswhich the Manager has identified in the Macau property market. Details of theseopportunities will be announced, as appropriate. Commenting on the disposal, Larry Kearns, the Company's chairman, said, "Thedisposal of Lot U secures a very attractive return to our investors but alsodemonstrates the ability of San You Development, our development partner for LotU, to create attractive and well positioned residential products. We continue tobe strong believers in the growth of the Macau property market and I would liketo take the opportunity to thank our investors for their continued support ofthe Company and its strategy." For further information on the Company, please refer to the website atwww.mcau.co.im. Investment Adviser: Speymill Property Group (Far East) LimitedThomas Sipos +852 2514 6104 Nominated Adviser:Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000Azhic Basirov / Siobhan Sergeant Public Relations:Tavistock CommunicationsJeremy Carey / Rachel Drysdale +44 (0)20 7920 3150 Notes to editors: Speymill Macau Property Company plc ("Speymill Macau" or the "Company") Speymill Macau (EPIC: MCAU.L) was established to create a portfolio of highquality residential properties in Macau, China. The Company listed on the AIMmarket of the London Stock Exchange in November 2006, following a placing ofUS$80 million. A second fundraising of US$70 million was completed in May 2007. The US Dollar denominated fund aims to provide investors with an attractiveoverall return to be achieved primarily through long term capital growth. Macau is one of only two Special Economic Regions, a semi-autonomousadministrative area, in China, and has enjoyed explosive economic growth, inpart due to its establishment as an important gambling and tourist destination.These developments have led to high historical and forecast GDP growth, drivenby rising incomes and low unemployment levels. Coupled with the limitedavailability of land, developers are now struggling to meet a stronger thananticipated demand for higher quality housing. These favourable market dynamicsare expected to enable Speymill Macau to offer shareholders an attractiveoverall return. Speymill Property Group Limited (SPG") is the Manager of the company and theInvestment Adviser is Speymill Property Managers (Far East) Limited, a whollyowned subsidiary of SPG. This information is provided by RNS The company news service from the London Stock Exchange