TCA.L Regulatory News (TCA)

1 Dec 2006 10:15

Speymill Macau Property Company PLC01 December 2006 Speymill Macau Property Company plc ("MCAU" or "the Company") Completion of first investment Speymill Macau Property Company plc (AIM: MCAU), the Macau focused residentialinvestment property company listed on AIM, is pleased to announce that, on 29November 2006, it completed its first investment in Macau, further to the optionagreement entered into by the Company's manager as detailed in the Company'sadmission document published on 14 November 2006. The Company has purchased 243 residential units, ranging in size from 1,198 to2,226 square feet, and 243 car parking spaces, in three towers of a luxurywaterfront development. The development is part of a six tower project whichcomprises residential apartments, serviced apartments, car parks and a retailpodium. While the number of units purchased remains as previously disclosed inthe Company's admission document, the Company has made the decision to swap thetop 4 floors and bottom 4 floors in Tower 3 for equal number of middle floors inTowers 2 and 5 at equivalent prices per square foot. The investment managerbelieves that this change is beneficial to the Company. The apartments werepurchased from San You Development, one of the leading residential developers inMacau. The total price payable by the Company is HK$906,508,929 (US$116.5 million), ofwhich 30% will be settled immediately in cash, 10% is required withinapproximately 12 months and the remainder is payable on completion of thedevelopment. To the extent that the Company chooses to retain the apartments,the Company's manager is satisfied that it will be able to secure bankborrowings for the outstanding balance of the price payable. The properties in relation to which the option agreement was entered into werevalued by CB Richard Ellis on 27 November 2006 at a total gross developmentvalue of HK$1.054 billion (US$135.5 million) which represents a 16% increase onthe purchase price. Commenting on the investment, Larry Kearns, the Company's chairman, said, "Weare very pleased with the recent acquisitions of residential properties in Macauand continue to be strong believers in the growth of the Macau property sector." 1 December 2006 Notes to editors: - Speymill Macau Property Company plc was established to invest primarily in high quality residential properties in Macau. The Company will also pursue selective commercial investments to capture expected ancillary Macau service sector growth. - The Company listed on AIM on 17 November 2006 raising US$80 million in a placing on admission. - The Company's objective is to provide shareholders with an attractive overall return to be achieved primarily through long-term capital growth. - The Manager is Speymill Property Managers Limited, the Investment Adviser is Speymill Property Managers (Far East) Limited and the Property Adviser is Avila Capital Limited. The Manager, Investment Adviser and Property Adviser are responsible for identifying investment opportunities. - The Manager is a wholly owned subsidiary of Speymill Group plc (AIM: SYG). The Investment Adviser is a wholly owned subsidiary of the Manager. This information is provided by RNS The company news service from the London Stock Exchange