11 Jun 2008 07:00
11 June 2008
Speymill Macau Property Company plc
("Speymill Macau" or the "Company")
High-end US$132 million Residential Investment
Speymill Macau Property Company plc (AIM: MCAU), the Macau focused property investment company listed on AIM, is pleased to announce that, on 10 June 2008, it entered into a forward funding arrangement with Companhia de Construcao e Investimento Ho Chun Kei, Limitada, a local Macau developer ("Ho Chun" or the "Developer") to finance the development of a high-end residential building in the inner harbour area on the southwest of Macau Peninsula.
At completion of the development, the Company has committed to purchase 259 residential units, ranging in size from approximately 870 square feet gross floor area for 2-bedroom units to approximately 1,300 square feet gross floor area for 3-bedroom units. The development will consist of 4 towers and aim to be a landmark residential development with a clubhouse and car park. The residential units will offer excellent views over to Zhuhai as well as landmark views over Penha Hill and Central Macau Peninsula. It is currently envisaged that the units will be sold prior to completion and handover in 2010.
The total consideration is HK$1,028,036,000 (US$132 million), of which 30% is to be settled immediately, with the remainder becoming payable upon completion. The Developer has achieved all relevant government approvals, planning and building permits as well as licenses for the development. The development is currently undergoing the formal process of achieving government gazetting for its revised land conditions and this process is expected to be completed within the next 12 months. The location of the development should benefit from the opening of Ponte 16, increased accessibility through the development of the light transit railway and the continued regeneration of the inner harbour area.
Ho Chun started developing Macau real estate in the late 1970s and is currently principally engaged in real estate development, property management, infrastructure construction and project management. It is one of Macau's prominent developers and has developed and constructed more than 100 buildings in Macau.
Commenting on the investment, Peter Churchouse, a director of the Company, said, "This acquisition offers a great opportunity to invest in the emerging inner harbor area of Macau with its close proximity to the historic parts of Macau Peninsula, the central business and gaming districts. We believe that the smaller size of the units should be attractive for local residents as well as international buyers. We remain confident in the demand for modern housing units in a supply-constrained economy that is growing its labour force very rapidly. Further I would like to take the opportunity to thank our investors for their continued support of the Company and its strategy."
For further information please visit www.mcau.co.im or contact:
| Speymill Property Group (Investment Advisers) | Smith & Williamson Corporate Finance Limited (Nomad) | Tavistock Communications |
|
Thomas Sipos, Head of Real Estate Investments for Asia Pacific |
Azhic Basirov Siobhan Sergeant |
Jeremy Carey Simon Hudson |
| +852 2514 6104 | +44 20 7131 4000 | Gemma Bradley |
| Floris van Dijkum, Global Chief Investment Officer | +44 20 7920 3150 | |
| +44 20 7659 0763 | Fairfax I.S. PLC (Brokers) | |
| Paul Smith, CFO Funds | James King | |
| +44 1624 640864 | +44 20 7598 5368 |
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 mainly high quality residential properties in Macau, China. The Company listed on the AIM market of the London Stock Exchange in November 2006, following a placing of US$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 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 and tourist destination. These developments have 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. These favourable market dynamics are expected to enable Speymill Macau to offer shareholders an attractive overall return.
Speymill Property Group Limited ("SPG") is the Manager of the company and the Investment Adviser is Speymill Property Managers (Far East) Limited, a wholly owned subsidiary of SPG.