By Amanda Smith
Sniper Capital believes its Macau property opportunities fund is attracting attention from multi-managers as a diversifier in multi-asset portfolios.
The property developer, which counts multi-managers such as Apollo and Insight Investment among its investors, says Macau is the only place on Chinese soil where gambling is legal and it dominates the economy.
Growth driven by gaming and tourism is having a positive impact on the property market, while the construction of a bridge linking Macau to Hong Kong and Zhuhai is also expected to promote growth.
Sniper Capital says Macau is about 12 times the size of Hyde Park, with a population of 550,000. The firm has built up a network of contacts in the region during the last seven to eight years and says local knowledge is crucial.
Sniper Capital partner Tom Ashworth says: "Our view on property is that it is good value and will move higher but you have to be selective.
"Macau is a quirky place to do deals and it is important to have local knowledge. You cannot just fly in from Britain or the US to buy property because the chances are that you will get ripped off."
Apollo Multi-Asset Management fund manager Tom McGrath says: "Almost every month we seem to report that Macau property again excelled. It was up by 4 per cent in December as the newsflow out of Macau got stronger and stronger. We expect a sharp upward review in the valuation and NAV of the fund."