TIDMMPO
RNS Number : 8813S
Macau Property Opportunities Fund
11 November 2019
11 November 2019
Macau Property Opportunities Fund Limited
Notice of Annual General Meeting and Reduction in Operating
Costs
Macau Property Opportunities Fund Limited (the "Company") today
announces that the Notice of Annual General Meeting ("AGM") has
been posted to shareholders. The AGM will take place on 29 November
2019 at 10.30 a.m.
An electronic copy of the AGM and Chairman's Letter is available
at the Company's website at
https://mpofund.com/investors/publications/shareholder-documents/.
In addition to the ordinary business being proposed at the at
the AGM, a resolution will be put to shareholders to continue the
life of the Company (the "Continuation Resolution") in accordance
with the obligation set out in the circular dated 8 June 2018.
The Board recommends that shareholders vote in favour of the
Continuation Resolution in order to allow the opportunity to
dispose of the remaining Company assets in an orderly way. It is
likely that returns from sales of properties would be materially
lower if the Company was forced to sell as a result of
discontinuation, and a continuation would allow time for the
existing comprehensive marketing and sales initiatives already in
place to deliver an orderly divestment of the remaining portfolio.
It is therefore commercially sensible for the Company to continue.
Should the Continuation Resolution be approved it is envisaged that
the next resolution for continuation would be held in November
2020.
In the Chairman's Statement in the annual financial statements
published on 7 October 2019, it was stated that the Board was
seeking to reduce the Company's operating expenses and that it was
in advanced discussions with Sniper Capital Limited (the
"Investment Manager") and Estera International Fund Managers
(Guernsey) Limited (the "Administrator") regarding their fee
levels.
The Board today announces that it has reached agreement with the
Investment Manager to restructure the investment management fees, a
summary of which is set out below.
Management Fee
The current on-going management fee shall be reduced from 2 per
cent. to 1 per cent. of the adjusted NAV for the calendar year 2020
and shall reduce to zero for the calendar year 2021.
Realisation Fee
A realisation fee shall be payable on deals originated and
secured by the Manager in 2020 which shall be linked to the sales
price achieved as follows: where the sale price of the asset is 90
per cent. or more of the of the value of the relevant asset as at
30 September 2019 (the "Carrying Value") a fee of 2.5 per cent. of
net proceeds (net of debt, costs and taxes) ("Net Proceeds") shall
be payable; where the sale price of an asset is more than 80 per
cent. but less than 90 per cent. of the Carrying Value of the
relevant asset, a realisation fee of 1.5 per cent. of Net Proceeds
shall be payable; and where the sale price of an asset is less than
80 per cent. of the Carrying Value, no realisation fee shall be
payable.
For the calendar year 2021, a realisation fee of 1.5 per cent.
shall be payable on sales of assets above 80 per cent. of the
Carrying Values and, as set out above, zero management fee shall be
payable.
Extra Incentive Fee
Additionally, in the event that divestments of all of the assets
are secured by the Manager (either in one transaction or multiple
transactions) prior to 31 December 2020, an extra incentive fee
equal to 1 per cent. of the Net Proceeds of the assets shall be
payable (the "Extra Incentive Fee"), subject to the aggregate sale
price of those assets exceeding 80 per cent. of the Carrying Values
of the relevant assets in aggregate. The time period for securing
the realisation of all assets in order for the Manager to qualify
for the Extra Incentive Fee may be extended for a further six
months period subject to the satisfaction of certain
conditions.
The Extra Incentive Fee is designed to reinforce the focus on
achieving the sales of all of the assets in 2020.
(the above changes, the "Proposals".)
The revised fee structure, which is subject to the Continuation
Resolution being passed, will formally take effect from 1 January
2020 and will be more specifically documented prior to such time.
The Board places continued importance on achieving sales of the
assets in 2020 in line with the stated investment objective and
restructuring the Manager's fees so as to place more focus on
delivering realisations in 2020. The challenges impacting the
current high-end residential market in Macau set out more fully in
the Company's Annual Report remain.
In addition, with effect from 1 January 2021, termination of the
Company's agreement with the Investment Manager may be effected by
the Company or the Manager on 6 months written notice by either
party (reduced from the current notice period of 12 months).
The Investment Manager is deemed to be a related party of the
Company and as such the Proposals constitute a smaller related
party transaction and accordingly are subject to the modified
requirements for such transactions as set out in Listing Rule
11.1.10 R. The Company has obtained written confirmation from a
Sponsor in accordance with the requirements of LR 11.1.10 (2)(b)
that the terms of the Proposals are fair and reasonable as far as
the shareholders are concerned.
In addition, the Company has also agreed with the Administrator
that the basis of calculation of the Administrator's fee will be
amended such that this should result in a further substantive cost
saving for the Company. The change will also take effect from 1
January 2020 and will similarly be documented before the end of
2019.
The Board reiterates its determination to restrain the Company's
operating costs whilst ensuring the Investment Manager is
appropriately incentivised and focused and on the timely divestment
of the Company's remaining assets.
Notes
This announcement contains inside information for the purposes
of the Market Abuse Regulation (EU) No. 596/2014.
About Macau Property Opportunities Fund
Premium listed on the London Stock Exchange, Macau Property
Opportunities Fund Limited is a closed-end investment company
registered in Guernsey and is the only quoted property fund
dedicated to investing in Macau, the world's largest gaming market
and the only city in China where gaming is legalised.
Launched in 2006, the Company targets strategic property
investment and development opportunities in Macau. Its current
portfolio comprises prime residential property assets.
The Company is managed by Sniper Capital Limited, an Asia based
property investment manager with an established track record in
fund management and investment advisory.
Stock Code
London Stock Exchange: MPO
LEI
213800NOAO11OWIMLR72
For further information:
Investor Relations
Sniper Capital Limited
Tel: +65 6222 1440
info@snipercapital.com
www.snipercapital.com
Corporate Broker
Liberum Capital
Gillian Martin / Owen Matthews
Tel: +44 20 3100 2000
Company Secretary & Administrator
Estera International Fund Managers (Guernsey) Limited
Kevin Smith
Tel: +44 14 8174 2742
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NOAVKLFBKFFLFBX
(END) Dow Jones Newswires
November 11, 2019 02:00 ET (07:00 GMT)
Macau Property Opportuni... (LSE:MPO)
Historical Stock Chart
From Apr 2024 to May 2024
Macau Property Opportuni... (LSE:MPO)
Historical Stock Chart
From May 2023 to May 2024