Macau Property Opportunities Fund Ltd. : MPO announces interim results

27 February 2013

MPO announces interim results

For the period ended 31 December 2012

Macau Property Opportunities Fund Limited announces its results for the six months ended 31 December 2012. The Company, which is managed by Sniper Capital Limited, develops and invests in property opportunities in Macau and China's Pearl River Delta.

FINANCIAL HIGHLIGHTS

Fund performance and portfolio valuation

• Adjusted NAVper share was US$3.19 (£1.971), representing an uplift of 6.2% for the six-month period (Sterling terms: 3.1%).
  
• Property portfolio valued at US$392.0 million, up 6.5% for the six-month period.
  
• As at 31 December 2012, the Company's share price discount to Adjusted NAVper share stood at 41%.

Financial management

• Cash balance of US$22 million as at 31 December 2012, of which US$7.0 million was pledged as collateral for the Company's banking facilities.
  
• During the six-month period, 7,220,250 shares (c. 7% of MPO'sissued share capital) were repurchased and cancelled. Worth US$12.4 million in value, this series of share buybacksadded 3.2% to Adjusted NAVper share.
  
• Total loan-to-value ratio stood at 24%2as at period end, versus 27% in June 2012.

1. Based on a US Dollar/Sterling exchange rate of 1.62 as at 31 December 2012.
2. Based on the Company's portfolio value as at 31 December 2012 and assuming a full drawdownof its committed loan facilities.

OPERATING HIGHLIGHTS

• The Waterside (luxury residential)
  - Occupancy rates stabilisedabove 80% of total gross floor area, with a net yield of 2.4% achieved on a per square foot basis.
  - Latest achieved rents increased to HK$21.20 per square foot -15% higher than a year earlier.
  
• The Fountainside(low-density residential)
  - Expected to obtain occupancy permit in the second half of 2013 with the unsold units (65% of the total gross floor area) to be launched in the next few months.
  
• SenadoSquare (prime retail)
  - Negotiations for the development plan are in the final stages and construction is expected to commence by end of 2013,following the receipts of all necessary approvals. The development should be fully completed by early 2016.
  
• Zhuhaiprojects: APAC Logistics Centre Phase Two (warehousing/logistics) & Cove Residence (entry-level residential)
  - Main contract work for both projects has completed.
  - Tenants for both premises are actively being sourced. Increasing demand being seen as the economic momentum of ShizimenCentral Business District and HengqinIsland further gathers pace.

Commenting on the period under review, David Hinde, the Company's Chairman, said:

"Despite a new wave of property cooling measures introduced by the Macau government last year, local property prices remain resilient. 

"Our overriding objective remains to reward our shareholders whether by continued share buybacks, unlocking value through appropriate divestments or by identifying new accretive acquisitions."

The Manager will be available to speak to analysts and media over the next week. If you would like to arrange a call, please contact Simon Hockridgeat MHPCommunications on +44 (0) 20 3128 8100.  

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