Macau (MNA) – The sale of a property slated to host a retail redevelopment project called Senado Square in downtown Macau has been green lighted by shareholders of the company, Macau Property Opportunities Fund Limited (MPO), for a total consideration of HK$800 million (US$102.01 million).
In a general meeting held on March 19 to seek shareholders’ approval on the sale, the company announced that the resolution ‘was duly passed without amendment,’ according to a filing with the London Stock Exchange.
The sale transaction of the property should be completed on or before March 29 this year, with previous filings of the company disclosing that the buyers of the property are Ardent Success Limited and City Universe Limited.
Speaking to Macau News Agency (MNA), Doris Boo, the manager of Sniper Capital Limited – the property investment company which controls MPO – said that “at this point” the company has no information as to whether the purchaser “has the intention to redevelop the site as a shopping mall.”
According to previous reports from MNA, MPO had stated that the site, which is located in a UNESCO-protected zone and central tourist area of the city, has the potential to offer nearly 68,000 square feet of modern retail and food and beverage space.
The original redevelopment project (see image), developed by architecture firm Arquitectonica, had been slated for completion in 2019.
The disposal represents 19.9 per cent of the company’s portfolio of gross assets as at June 30, 2017. It will be accomplished through the transfer of the entire issued share capital of the company and the assignment of shareholder loans to the buyer.
MPO has claimed the deal represents a gain of 541 per cent over the original acquisition cost of US$15.96 million in October 2007, implying a return on investment of 469 per cent and an internal rate of return of 20 per cent.
As at December 31, 2017, the property had been appraised at HK$703 million, with the sale price achieved representing a premium of 14 per cent on the property valuation.
The plot was acquired by the company in 2007, with the architectural plan for the project having then been approved by the Macau SAR Government.
* With Sheyla Zandonai
