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Macau Property Opportunities agrees new Investment Management Agreement

Macau Property Opportunities (MPO) has announced that it has agreed a new investment management agreement with the manager, Sniper Capital, retrospectively effective from 1 February 2022. A management fee of US$100,000 per calendar month for the calendar year 2022 will be payable, following an interim payment of $99,000 in January 2022. Realisation fees will continue to be payable on the same terms as in 2021 (using the 30 September 2019 valuation basis for calculating any realisation fees due) with all fees payable under the Agreement subject to an overall cap of US$1,780,000.

COVID hampering realisation efforts

MPO says that the challenges arising from the continuing impact of COVID-19 on the Macau market, which have been compounded by the pursuit of a zero-COVID strategy in Macau, mainland China and Hong Kong, have negatively impacted on the realisation of the Company’s assets. MPO’s board says that the divestment of all remaining assets continues to be the highest priority of the Company and the Manager is exploring all possible options to divest the assets for the benefit of shareholders. The Board’s view remains unchanged that the Manager’s knowledge of the Company’s portfolio of assets and the Macau market is key to the delivery of the divestment strategy.

The extra-incentive fee arrangement of 1 per cent. if all assets were sold in 2021 has now elapsed and will not be included for 2022. The Agreement will expire at 31 December 2022, unless new arrangements are agreed with the Manager prior to that date. The Agreement is also subject to a revised six month notice period.

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