1 Feb 2010 09:00
1 February 2010
Speymill Macau Property Company plc
("Speymill Macau" or "the Company")
Update on the Riviera development ("Riviera" formerly known as "Lorcha")
Speymill Macau, the Macau focused property investment company quoted on AIM, announces that further to the timing of the repayment of capital commitments disclosed in its half year report dated 7 September 2009, it has signed an agreement with the developer of Riviera which grants to the Company a six month extension to the final stage commitment of approximately US$93 million (including acquisition costs) in relation to that development. This final stage commitment had originally been expected during the first quarter of 2010.
Riviera, located at Rua Do Almirante Sergio No. 94 - 100, Macau, is a forward funding arrangement to acquire 259 high-end residential units in two towers (out of a total of 581 units).
In consideration for the extension, Speymill Macau has agreed to pay the developer 4.8 per cent. interest on any outstanding amounts payable, plus associated arrangement fees. However, under the agreed extension, all proceeds of sales of apartments completed prior to the final payment date will be paid to the developer of Riviera and 95 per cent. of such proceeds will be used to reduce the outstanding amounts payable, with 5 per cent. returned to Speymill Macau at the end of each month.
A further update on this development will be provided at the time of the announcement of the full year results, expected to be announced in the second half of March 2010.
For more information, please visit www.speymillmacau.com or contact:
| Speymill Property Group Limited | Speymill Property Group (Far |
| (Manager) | East) Limited (Investment Adviser) |
| Nigel Caine, CFO Funds | Floris van Dijkum |
| Nick Harris, Manager | +852 2514 6104 |
| +44 1624 640 860 |
|
|
|
|
| Smith & Williamson Corporate Finance Limited | Fairfax I.S. PLC |
| (Nominated Adviser) | (Brokers) |
| Azhic Basirov | James King |
| Siobhan Sergeant | Andrew Cox |
| +44 20 7131 4000 | +44 20 7598 5368 |
|
|
|
| Tavistock Communications Limited |
|
| (Media & Investor Relations) |
|
| Jeremy Carey |
|
| Simon Hudson |
|
| Gemma Bradley |
|
| +44 20 7920 3150 |
|
Notes to Editors:
Speymill Macau Property Company plc ("Speymill Macau" or the "Company")
Speymill Macau was incorporated and registered in the Isle of Man on 31 October 2006 and is a closed-end investment company registered in the Isle of Man and traded on AIM, a market of the London Stock Exchange.
The Company was established to invest primarily in the Macau property market. This includes pursuing selective commercial property investments to capture expected ancillary Macau service sector growth. The Company was admitted to AIM on 17 November 2006 raising US$ 80 million in a placing on admission. A second fundraising of US$ 70 million was completed in May 2007. The Company's objective is to provide shareholders with an attractive overall return to be achieved primarily through long-term capital growth.
Macau is one of only two Special Economic Regions, a semi-autonomous administrative area, in China, and has enjoyed explosive economic growth, in part due to its establishment as an important gambling centre which has led to high historical and forecast GDP growth, driven by rising incomes and low unemployment levels. Coupled with the limited availability of land, developers are now struggling to meet a stronger than anticipated demand for higher quality housing. The Company intends to exploit these favourable market dynamics with the aim of generating attractive overall returns for shareholders.
Speymill Property Group Limited ("SPG") is the Manager of the Company and the Investment Adviser is Speymill Property Group (Far East) Limited, a wholly owned subsidiary of SPG.