TCA.L Regulatory News (TCA)

28 Apr 2008 07:00

Speymill Macau Property Company PLC28 April 2008 28 April 2008 Speymill Macau Property Company plc ("Speymill Macau" or the "Company") Speymill Macau Invests in Joint Venture Speymill Macau Property Company plc (EPIC: MCAU.L), the Macau focused propertyinvestment company listed on AIM, announces that it has agreed terms for theformation of a joint venture (the "Venture") with a Macau based boutiqueproperty advisory and asset management firm. The Venture will have an initialcapitalisation of approximately US$ 10 million (HK$ 78 million), with theCompany investing up to US$ 8.7 million (HK$ 67.5 million) in cash and the jointventure partner contributing a property at a net value of US$ 1.3 million (HK$10.5 million). The term of the Venture will be three years with two separateone-year extensions at the Company's discretion. The Venture will acquire and reposition mainly existing residential propertiesat the affordable end of the Macau residential market with identifiedrevaluation potential and will aim to build a portfolio of income producingassets. The joint venture partner will be responsible for deal sourcing and willprovide on-going professional asset and property management services to theVenture. The joint venture partner has identified a significant number ofpotential property investments that the Venture will seek to pursue with an aimto be fully invested within 6 to 12 months. The Venture intends to fund its acquisitions using a combination of equity andsenior term debt, typically on a project-by-project basis, subject to a leverage cap of 75% of the market value of the properties. Commenting on the Venture, Larry Kearns, Chairman, said, "The joint ventureprovides Speymill Macau with an opportunity to access an attractive segment ofthe Macau residential property which has been difficult and unpractical for usto penetrate. We continue to review a number of other projects through ourexisting relationships in order to provide investors with access to a widerrange of property investments in Macau." For further information please visit www.mcau.co.im or contact: Speymill Property Group Smith & Williamson Corporate Tavistock(Investment Advisers) Finance Limited (Nomad) Communications Thomas Sipos, Azhic Basirov Jeremy CareyHead of Real Estate Siobhan Sergeant Simon HudsonInvestments for Asia Pacific Gemma Bradley+852 2514 6104 +44 20 7131 4000 +44 20 7920 3150 Floris van Dijkum, Fairfax I.S. PLC (Brokers)Global Chief Investment Officer James King+44 20 7659 0763 +44 20 7598 5368 Paul Smith, CFO Funds +44 1624 640864 Notes to editors: Speymill Macau Property Company plc ("Speymill Macau" or the "Company") Speymill Macau (EPIC: MCAU.L) was established to create a portfolio of highquality residential properties in Macau, China. The Company listed on the AIMmarket of the London Stock Exchange in November 2006, following a placing ofUS$80 million. A second fundraising of US$70 million was completed in May 2007.The US Dollar denominated fund aims to provide investors with an attractiveoverall return to be achieved primarily through long term capital growth. Macau is one of only two Special Economic Regions, a semi-autonomousadministrative area, in China, and has enjoyed explosive economic growth, inpart due to its establishment as an important gambling and tourist destination.These developments have led to high historical and forecast GDP growth, drivenby rising incomes and low unemployment levels. Coupled with the limitedavailability of land, developers are now struggling to meet a stronger thananticipated demand for higher quality housing. These favourable market dynamicsare expected to enable Speymill Macau to offer shareholders an attractiveoverall return. Speymill Property Group Limited ("SPG") is the Manager of the company and theInvestment Adviser is Speymill Property Managers (Far East) Limited, a whollyowned subsidiary of SPG. This information is provided by RNS The company news service from the London Stock Exchange