Sniper listed fund makes HK$320m exit

Macau manager Sniper Capital has sold a residential development from its London-listed, closed-ended real estate opportunity fund.

Sniper Capital, the manager of the London-listed Macau Property Opportunities Fund MPO), has agreed the sale of an unfinished residential redevelopment in a deal valued at HK$320 million (€29 million; $41 million).

The firm, which also launched its first private equity real estate fund last August, said it had made a gross gain of 92 percent on the sale of its Rua do Laboratorio property which it described as ‘an entry level residential redevelopment property located in the northern Macau Peninsula. Sniper acquired the site in 2006 for HK$166 million.

The deal is expected to complete before 18 April.

Sniper said it took the decision to exit the project prior to development completion in order to “unlock value and crystallise returns for (MPO’s) shareholders”.

The firm added: “The sale also avoids two years of potential construction and marketing risk and capitalises on the value that has been created since acquisition through securing the property title, obtaining vacant possession, completing demolition, clearance of the site and achieving architectural planning approval.”

Sniper has been one of Macau’s most active real estate fund management businesses. The firm launched its closed-ended investment fund on London’s AIM market in June 2006, raising £105 million (€124 million; $170 million) from investors to invest in large projects in the colony’s non-gaming real estate market. The fund has since been listed on London’s senior stock exchange.

Last year, it launched its first private equity real estate fund, aiming to corral approximately $100 million from investors, as it sought to invest in smaller schemes. The fund has already raised its first $20 million.