US$32 million of New Loan Facilities

RNS Number : 9097F

Macau Property Opportunities Fund

22 June 2012

 



22 June 2012

Macau Property Opportunities Fund Limited

("MPO" or the "Company")

US$32 million of New Loan Facilities

Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, is pleased to announce that it has agreed two new loan facilities totalling a combined US$32 million. Once fully drawn down, the Company anticipates overall loan-to-value (LTV) rising to 28% from the current level of 22%.

The Company intends to use the funds raised to pursue acquisitions based on MPO's investment strategy and continues to progress negotiations on an attractive pipeline of sites totalling approximately US$500 million in combined acquisition value.

Loan details

Restructuring of One Central Residences loan

MPO has entered into a further loan agreement with Hang Seng Bank (a principal member of the HSBC Group) to increase LTV to 43% from the current level of 30% for its existing loan facility.

Interest for the additional financing of US$25.8 million will be charged at a spread of HIBOR plus 3.25% per annum. This compares with HIBOR plus 1.6% per annum for the existing loan facility with an outstanding principal of c. US$61.7 million. The new credit facility will mature in November 2015, in tandem with the existing loan.

There are no other material changes to the loan terms of the original loan agreement.

Refinancing for The Green House

The Company has also secured a new loan facility with Wing Lung Bank (Macau) for its luxury private house investment, The Green House. An LTV of 50% has been agreed, making available US$6 million of cash. Drawdown of the loan will be subject to the usual conditions, including agreement of final documentation. The facility is with recourse to MPO and is for a term of two years to June 2014. Interest will be charged at HIBOR plus 3.5% per annum.

The Fountainside Loan Status

MPO is also currently in discussions to extend the loan arrangement for its niche low density residential development - The Fountainside - for another year, in tandem with the project development schedule. Further details will be announced in due course.

- Ends -

About Macau Property Opportunities Fund

Macau Property Opportunities Fund Limited is a closed-end investment fund registered in Guernsey and listed on the London Stock Exchange Main Market.

Launched in 2006, the Company seeks to deliver long-term returns from the investment in and development of high quality properties located in Macau and the western region of China's Pearl River Delta. Its current $350 million portfolio comprises a mix of strategically-positioned residential, retail and warehousing property assets.

The Fund is managed by Sniper Capital, an Asian-based property investment manager that provides highly focused Fund Management and Advisory Services.

For further information:

Company Registration Number 44813

Website: www.mpofund.com

Public Relations

MHP Communications

Simon Hockridge / Andrew Jaques 

Tel: [phone]

Manager (Investor Contact)

Sniper Capital

Faye Chiam

Tel: [phone]

Email: [e-mail]

www.snipercapital.com

Corporate Broker

Liberum Capital

Chris Bowman / Richard Bootle

Tel: [phone]

Company Secretary & Administrator

Heritage International Fund Managers

Mark Huntley / Laurence McNairn

Tel: [phone]

Stock Codes:

Bloomberg:    MPO LN

Reuters:      MPO.L

 

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