Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, today announces the successful signing of its first debt financing transaction, a HK$642.82 million (c.US$83 million) loan facility with a consortium of international and Macanese Banks, led by HSBC.
The Company continues to adopt a highly measured cash management policy, retaining a strong and prudent balance sheet with a current cash balance in excess of US$47 million. The debt facility will be used to finance the remaining consideration for Tower 6 and the 25 individual units acquired by the Company in One Central Residences, Macau’s premier luxury residential development currently under construction. Drawdown of the loan will be upon handover of the project, expected by the end of 2009.
The loan will be secured by means of a first registered legal mortgage over all the residential units owned by the Company at One Central Residences. The term of the loan is to 30 September 2012, with drawdown to be made no later than 30 December 2009. Interest will be charged at 3-month HIBOR plus 2.4% per annum. The facility is to be repaid in four half-yearly instalments commencing 30 March 2011, or 15 months from the date of drawdown, whichever is earlier, with 65% of the principal due on the final repayment date. The loan-to-value covenant specified in the documentation is 55%.
In addition to this facility, the Company is in ongoing discussions with respect to construction financing for its four development projects. To date, these discussions have proven to be positive and the facilities will be progressed further as planning approvals are received. Further details will be announced in due course.
David Hinde, Chairman of MPO said: “The debt markets have deteriorated significantly since last June when terms of the loan were initially announced and we are very pleased that the Company has successfully secured financing for this exceptional project. This clearly reflects the strong relationship MPO has developed with HSBC and a number of other banking organisations, as well as the premium quality and positioning of One Central Residences.”
Further Details:
One Central is a high-end mixed-use development project combining residential, hotel and retail facilities on a prime waterfront site located on Macau Peninsula. The high quality of design and construction being overseen by the joint venture partners Hongkong Land and Shun Tak Holdings, will ensure that One Central stands well above other existing and currently planned projects in Macau. One Central Residences, the residential portion of the project, comprises seven towers of premium luxury apartments. MPO acquired Tower 6 in November 2006 and subsequently purchased an additional 25 well-positioned units across various other towers. The project is due for completion by the end of 2009.