The fund managed by Sniper Capital lost 2.1 per cent of its portfolio value in the last six months. The company announced that the construction of the Senado Square retail project is now expected to begin in early 2016.
The value of the property portfolio of Macau Property Opportunities Fund (MPO) decreased 2.1 percent to US$547.6 million (MOP4.4 billion) during the first sixth months of the fiscal year 2014/2015, according to the interim report of the company.
The value of MPO’s portfolio already includes the luxury property acquired in Penha Hill announced last month which cost HK$182.45 million. The company said the decline in value was due to China’s ongoing anti-graft campaign which it claims has softened the property market.
“Considering the near-term challenges currently being faced by Macau, the Company has delivered a resilient performance for the period. I have every confidence that MPO, with its prime portfolio of assets, will successfully weather this healthy period of consolidation”, the Chairman, David Hinde, said of the results.
It is also mentioned in the interim report that MPO now expects to have planning approval for its Senado Square project by early 2016, when in the last final results the construction was expected to start in 2015. This project is located in the centre of Macau and will occupy a gross floor area of 70,000 square feet for prime retail shops.
“While the project has been subject to delays due to its scale and location in a sensitive heritage district, significant further value is expected to be unlocked through redevelopment”, it was explained. Senado Square will have an investment of US$37 million (MOP296 million) and is slated to open by the end of 2017.
MPO also revealed mixed news about its luxury residential property The Waterside, whose occupancy rate dropped from 80 per cent to 67.2 per cent in six months. The good news for the company is that rental rates in this property grew from HK$25 to HK$28.5 per square foot per month.