Macau Property Opportunities Fund MPO Enters Formal Contract to sell Senado Square (8498D)
05 February 2018 - 6:00PM
UK Regulatory
TIDMMPO
RNS Number : 8498D
Macau Property Opportunities Fund
05 February 2018
3 February 2018
Macau Property Opportunities Fund Limited
("MPO" or the "Company")
MPO Enters into Formal Contract to Sell Senado Square Project
for
US$102.3 Million
Macau Property Opportunities Fund Limited, managed by Sniper
Capital Limited, today announces that it has conditionally agreed
to sell its Senado Square retail redevelopment project to Ardent
Success Limited and City Universe Limited (together the
"Purchaser"), for HK$800 million (c. US$102.3 million)* (the
"Transaction"). Senado Square is held through a special purpose
company within the Company's group and the sale will be effected
through the sale of the issued share capital of that company.
The sale price represents a premium of 14% to the property's
valuation of HK$703 million (c. US$90.0 million) as at 31 December
2017 and a gain of 541% over the acquisition cost of US$15.96
million in October 2007. This translates to a return on investment
of 469% and an internal rate of return of 20%. For the 12 month
period ended 30 June 2017, no profits were attributed to Senado
Square given it is and remains a development asset.
The disposal of Senado Square forms part of the Company's
commitment to realising asset values and returning cash to
shareholders as soon as reasonably practicable. All potential
divestment options for the Company's remaining assets are
continuing to be assessed with the goal of maximising exit
values.
Transaction Terms
Under the terms of a promissory agreement of assignment of
shares and shareholder loans ("Promissory Transfer Agreement"),
entered into by certain subsidiaries of the Company (the Company
and its subsidiaries being the "Group"), the Group is entitled to
receive, by no later than 7 February 2018, a deposit totalling
HK$15 million (c. US$1.9 million), representing c.1.9% of the
agreed sale price, and will receive a net payment of HK$705 million
(c. US$90.2 million) representing c.88.1% of the agreed sale price,
on completion of the Transaction, which is expected on or before 29
March 2018 (subject to shareholder approval of the Transaction
having first been received).
HK$80 million (c. US$10.2 million), representing 10% of the
agreed sale price, will be pledged as a bank guarantee for a period
of six months after the completion date. This will be released to
MPO thereafter, provided that no past debts, taxes or miscellaneous
fees and payments arise during the six-month period.
Upon the expiry of the bank guarantee, MPO and one of its
Macanese subsidiaries will jointly provide a corporate guarantee of
HK$20 million (c. US$2.6 million) to insure the Purchaser against
the same items as above for a further period of six months.
Under the terms of the Promissory Transfer Agreement, the
Company is required to pay HK$15 million (c. US$1.9 million)
compensation, in addition to the return of an amount equal to the
deposit paid, to the Purchaser in accordance with local law and
practice should the Group fail to comply with its contractual
obligations (including as to completion of the Transaction). The
Group has also agreed not to sell or agree to sell Senado Square
and its Macanese holding company to another purchaser within a
period of 10 months from the Promissory Transfer Agreement date of
2 February 2018 (should the Transaction not proceed through the
fault of the Group).
In line with its divestment strategy, the Company expects to
return cash to shareholders from the disposal of Senado Square in
the form that the Board consider is most appropriate, subject to
the retention of sufficient working capital for the Company's
ongoing operation.
Shareholder Approval
The Company intends to send an explanatory circular to its
shareholders and seek their approval for the Transaction on the
terms of the Promissory Transfer Agreement (and any related or
ancillary documentation to be entered into pursuant to the
Transaction), on the basis it constitutes a class 1 disposal for
the purposes of the UK Listing Rules. A further announcement will
be released by the Company upon publication of the explanatory
circular.
About the Project
Senado Square is a retail redevelopment site with a freehold
tenure, located in Macau's prime UNESCO-listed shopping precinct.
Once completed, the site has the potential to offer c.70,000 square
feet of modern retail and F&B space.
* Based on a US$/HK$ exchange rate of 7.82 as at 1 February
2018.
This announcement contains inside information.
-End-
About Macau Property Opportunities Fund
Macau Property Opportunities Fund Limited is a closed-end
investment company registered in Guernsey and is the only quoted
property fund dedicated to investing in Macau, the world's largest
gaming market and the only city in China where gaming is
legalised.
Listed on the London Stock Exchange's main market, it is also a
constituent stock of the FTSE All-Share and FTSE SmallCap
indices.
Launched in 2006, the Company targets strategic property
investment and development opportunities in Macau. Its current
portfolio comprises a mix of prime residential and retail property
assets that are valued at US$436.2 million as at 30 September
2017.
The Company is managed by Sniper Capital Limited, an Asia-based
property investment manager with an established track record in
fund management and investment advisory.
For further information:
Company Registration Number 44813
Website: www.mpofund.com
Manager
Sniper Capital Limited
Doris Boo
Tel: +65 6222 1440
Email: doris.boo@snipercapital.com
Corporate Broker
Liberum Capital
Richard Crawley / Richard Bootle / Jonathan Wilkes-Green / Henry
Freeman
Tel: +44 20 3100 2222
Company Secretary & Administrator
Estera International Fund Managers (Guernsey) Limited
Kevin Smith
Tel: +44 14 8174 2742
Stock Code:
London Stock Exchange: MPO
LEI
213800NOAO11OWIMLR72
This information is provided by RNS
The company news service from the London Stock Exchange
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