Macau Property Opportunities (MPO) has provided an update on its progress with its loan refinancing and portfolio divestment. To summarise, on the loan side, MPO has entered into a HK$540 million (US$69.7 million) five-year loan facility with Hang Seng Bank, while on the divestment side, MPO has entered into a provisional sale and purchase agreement to sell its remaining individual unit at One Central Residences at a price of HK$25 million (c.US$3 million) or HK$10,800 per square foot(c.US$1,393). MPO has also said that its Annual Results are expected to be released by the end of September 2020.
Loan refinancing
MPO has entered into a HK$540 million (US$69.7 million) five-year loan facility with Hang Seng Bank for its properties in One Central Residences. The new loan facility serves to finance the portion of the original loan which was due for settlement on 19 September 2020. The new loan will mature in September 2025 and interest will be charged at an improved rate of 1.80% per annum over the 1-, 2- or 3-month HIBOR rate. MPO says that the refinancing is expected to have positive impact on cash flow.
The Company has also agreed terms in principle with Hang Seng Bank for the refinancing of its loan tranche of HK$160 million (US$20.6 million) due in 2021. MPO says that further details are expected to be announced in due course. MPO says that, collectively, these two new tranches will refinance c.80% of the Company’s total loan facility for its investments in One Central Residences.
Divestment of remaining One Central Residences
MPO has entered into a provisional sale and purchase agreement to sell its remaining individual unit at One Central Residences for a price of HK$25 million (c.US$3 million) or HK$10,800 per square foot(c.US$1,393). This represents a premium of 4% to the latest valuation by Savills. The transaction is expected to complete by the end of November 2020. The total value of divestments of the assets at One Central Residences and The Fountainside achieved by the Company since the beginning of 2020, now totals c.HK$83 million (c.US$11 million).
MPO says that, despite the negative impact that the Covid-19 outbreak had on Macau’s economy in H1 2020, the recent stablised situation in both the territory and mainland China, and phased resumption of tourist visa issuance for mainland Chinese to visit Macau have helped sentiment and business conditions.