By Nigel Bolitho

The credit crunch was short lived in the Far East and no more so than in Macau. Six months of shock has given way to renewed investor and gambler confidence: in 2009 Macau's gaming revenues surpassed those of both Nevada (primarily Las Vegas) and New Jersey (Atlantic City).

Renewed confidence has also boosted Macau Property Opportunities (MPO) , which is starting to reverse the fall in net asset values (NAV) suffered in the previous financial year and is narrowing the gap between NAV and the share price. In fact, NAV has risen by 10.7 per cent since 30 June 2009. On the ground, the company expects to sign the first rental agreements for apartments in its prestigious Tower Six Waterside development in the next few months. There are 54 units plus five deluxe flats and, in time, when fully rented, they will be sold on to an institution.

MPO is also starting to develop two residential sites at Ruo do Laboratorio and Rua da Penha and it may not be long before sales revenues come in. That's because such apartments can be sold off-plan at an early stage. These two developments could push up the company's loan-to-value ratio from 24 per cent at end-December to 40 per cent - but that's still well below the covenanted figure of 60 per cent and management's maximum target of 50 per cent. MPO is also looking for new deals. There were few opportunities in late 2009 because no distressed sellers appeared, but an up-tick in prices may tempt vendors.