Retail site close to Senado sold for HKD800 million

Current aspect of the building

Sniper Capital yesterday announced the divestment of its Senado Square asset, a 70,000 square foot retail development project in the heart of Macau’s UNESCO-listed heritage district, for HKD800 million (approximately USD102 million).

It was planned that the site, which was acquired by the company in October 2007, would become a shopping center comprising a mix of international brands and food and beverage establishments. According to Sniper Capital’s website, the project was estimated to be completed this year, but no redevelopment works have started on the site.

The asset has been purchased by Ardent Success Ltd and City Universe Ltd, according to previous filings from the company, and will be completed before the month is out.

According to the property investment firm, the divestment price was in excess of the asset’s latest valuation. The sale price represents a circa 14 percent premium to the property’s valuation and a gain of 541 percent over the acquisition cost of HKD124.8 million, it noted in a statement. This translates to a return on investment of 469 percent and an internal rate of return of 20 percent.

Sniper Capital also said that the sale marked a “major milestone” in the company’s strategy of maximizing value for its investors.

Computer-generated image of the mall project

“The sale of [the] Senado Square [property] – at a significant premium to valuation – adds to Sniper Capital’s strong track record of successful divestments and asset stewardship,” said Sniper Capital’s Principal Tom Ashworth. “It is an excellent example of our ability to stay on the course and add value to assets to achieve a great outcome for our investors.”

“We remain confident in the appeal these properties hold to investors seeking value opportunities in one of Asia’s most compelling and attractively positioned property markets,” he added.

The company attributes its investment success to its early entry into the Macau property market, starting in 2004 when the international casino operators first opened their doors.

According to Sniper Capital’s Martin Tacon, the company’s “first-mover advantage and local presence” has enabled it to identify emerging trends and themes in Macau’s property market.

Founded in 2004, Sniper Capital has made more than 20 acquisitions in Macau. Today it manages four Macau-focused funds, three of which are dedicated to sustainable heritage projects in the historically rich vicinity of Taipa Village.

Among the firm’s most notable properties is its flagship residential asset The Waterside, a premium luxury en-bloc tower located within Macau’s One Central Residences.