Company Strategy

When the Company was established, its objective was to invest in high quality residential property and selective commercial investments in Macau.

Following the financial crisis of 2008-2009, the shareholders elected a new Board of Directors which proceeded to re-examine the debts and properties of the Company. After due consideration and re-structuring of debt, the new Board succeeded in selling a number of the investment properties and then called for an Extraordinary General Meeting of shareholders to decide whether to go forward with the Company's original mandate or to distribute the funds and liquidate the remaining properties. On November 19th, 2010 the shareholders unanimously voted to empower the Directors to sell the remaining properties, including the AIA Tower, at a time and under such conditions as they may determine in order to maximize shareholder value and then to distribute the proceeds.

Investment Rationale

Macau is a special administrative region (SAR) of China and the only region in China with legalised gambling. Macau has recently overtaken Las Vegas as the gaming capital of the world

  • Natural demand for housing and office space in Macau exceeds the current level of supply
    • Jones Lang LaSalle predict that between 2008 and 2010 there will be a demand of c. 25,000 residential units (New supply for the same period is estimated to be fewer than 20,000 units)
    • Office space scarcity due to lack of supply, will force both the rents and sales prices of Macau office space to leap by 15% to 20% (according to Jones Lang LaSalle)
  • Macau remains an attractive real estate market due to several factors:
    • Macau casino revenue surged 69.8% year-on-year in June 2008, to 9.78 billion patacas (US$1.22 billion)
    • Continuing strong growth in the Macau economy with rising incomes and low unemployment
    • Limited available land (Macau is only 27 square kilometres)
    • Attractive pricing of residential property relative to Hong Kong
    • The low quality of existing housing stock coupled with high average household size should stimulate demand through upgrade and increased household formation
    • Further demand caused by strong expected future indigenous population growth combined with continued immigration of expatriate workers to support growth in the casinos, hotels, retail, and related services industries such as banking, insurance, and law
    • Increased regional integration of Macau after completion of the Hong Kong-Zhuhai-Macau Bridge
    • Macau has experienced strong new business formation and offers a low tax environment for its residents and businesses