Macau Properties sells Senado Square – Macau Property Opportunities Fund has conditionally agreed to sell its Senado Square retail redevelopment project to Ardent Success Limited and City Universe Limited, for HK$800 million (c. US$102.3 million. The sale price represents a premium of 14% to the property’s valuation of HK$703 million (c. US$90.0 million) as at 31 December 2017 and a gain of 541% over the acquisition cost of US$15.96 million in October 2007. This translates to a return on investment of 469% and an internal rate of return of 20%.
The disposal of Senado Square forms part of the company’s commitment to realising asset values and returning cash to shareholders as soon as reasonably practicable.
In line with its divestment strategy, the company expects to return cash to shareholders from the disposal of Senado Square in the form that the board consider is most appropriate, subject to the retention of sufficient working capital for the company’s ongoing operation.
Shareholder Approval
The company intends to send an explanatory circular to its shareholders and seek their approval for the transaction. A further announcement will be released by the company upon publication of the explanatory circular.
About the project
Senado Square is a retail redevelopment site with a freehold tenure, located in Macau’s prime UNESCO-listed shopping precinct. Once completed, the site has the potential to offer c.70,000 square feet of modern retail and food & beverages space.
MPO : Macau Properties sells Senado Square