Investor Update Q4 2007

Macau Property Opportunities Fund
08 January 2008


                 Macau Property Opportunities Fund Limited
                    ('MPOF', the 'Fund' or the 'Company')

                            Investor Update
                         Fourth Quarter 2007

Quarterly Highlights



* US$43.1 million in new acquisitions announced

* 101% of Company's equity now committed

* Continued price appreciation in Macau residential property

* Positive Macau Government Policy Address

* Opening of prestigious MGM Grand Macau





Fund Overview



In October, the Company announced the successful acquisition of its fourth major
property (Property 4) bringing to a close almost two years of negotiations and
successfully converting a key pipeline site which was referred to in its
admission document. The total expected investment value amounts to US$26.6
million, comprising an acquisition price of US$15.85 million and an estimated
redevelopment cost of US$10.75 million.



The 10,500 sq ft freehold site is located adjacent to Senado Square, one of the
most popular tourist destinations on Macau Peninsula, which forms part of
Macau's World Heritage district due to its rich architecture. The area's
increasing local and tourist pedestrian traffic has resulted in strong demand
for retail outlets in the vicinity, driving retail property prices and rents to
amongst the highest in Macau. To capitalise on the location of Property 4, the
Company is planning a mixed-use redevelopment project incorporating prime retail
and entertainment space.



During the quarter, the Company also acquired a number of smaller properties in
various strategic locations across Macau in a series of separate purchases for
an aggregate consideration of US$16.5 million. This is part of an ongoing
strategy of acquiring well-located and attractively priced smaller property
assets in key areas across the Territory.





Portfolio Summary


Property    Sector           Type                Positioning           Current                Capital
                                                                        Status               Commitment
          1 Residential      Redevelopment       Local Residents       Design Process        US15.68m*
          2 Residential      Development         Premium Luxury        Construction          US$86.58m
          3 Residential      Redevelopment       Entry-level           Consolidating         US$45.96m*
          4 Mixed-use        Redevelopment       Retail/Tourism        Planning               US$26.6m*
Others#     Various          Various             Various               Various                US$16.5m
Total                                                                                        US$191.32m



*Includes acquisition & projected redevelopment costs

#Various smaller individual properties purchased by the Company



Development of 'One Central', the premium mixed-use development in which the
Company has purchased a residential tower (Property 2) remains on schedule for
completion in 2009, with construction now reaching the 15th floor out of the
planned circ. 40 floors. The attractive location of this project was further
cemented by the recent opening of the prestigious 600-room MGM Grand Macau
casino-resort which will be connected to One Central's retail podium. Secondary
market demand for One Central units has remained robust since the Venetian Macao
opened in August and in the run up to the MGM opening, with transacted prices of
more than US$1,000 per sq ft being achieved for well-positioned units.



Property 1's conceptual design and site investigations are now well underway and
the demolition of the existing structure is scheduled to commence in 2008. This
is a very well located site in a popular neighbourhood on Macau Peninsula, which
the Company intends to develop into residential flats targeted at local
residents.



Property 3, located in the rapidly regenerating northern area of Macau
Peninsula, will be redeveloped into affordable apartments catering to increasing
demand from entry-level local residents.  The Company is continuing negotiations
to consolidate adjacent sites in this area.



Following these latest acquisitions, the Company has now committed US$191
million or approximately 101% of the total equity raised at AIM Admission and
continues to negotiate on a further eight sites totalling approximately US$450
million in combined acquisition value.





Market Overview



Economy

Macau's rapid economic growth continues to be accompanied by a flood of foreign
investment. Government statistics indicate that gross fixed capital formation
grew by 38.3% YoY, helping to drive GDP growth to 30.9% YoY in Q3 2007. This has
placed the local labour market under significant pressure with unemployment
hitting a ten-year low of 2.9%, pushing wage inflation to over 20%. Gaming
receipts, one of the principal drivers of Macau's GDP, continue to grow
exponentially exceeding US$8.5 billion in the first ten months of 2007, a rise
of 47.1% YoY. Visitor numbers also set new records, hitting 24.3 million from
January to November 2007, up 22.9% YoY.



Property Market

Residential property prices continued to rise in Q4 as limited supply failed to
meet the growing demand for quality properties across Macau. The strong
fundamental demand from both investors and end-users has been further boosted by
booming regional stock markets and negative real mortgages rates, while the
sub-prime mortgages crisis in the US has so far had limited impact on lending or
market sentiment. High-profile marketing and sales campaigns were launched
during the quarter for a number of new residential projects. These included the
mid-tier 80-unit Ginza Plaza on Macau Peninsula where prices reached over US$600
per sq ft and Windsor Arch, a large-scale project comprising 1,600 units on
Taipa, where the asking price for better units will reportedly be set at up to
US$960 per sq ft.



In December, the Government announced that two plots of land in North West Macau
Peninsula will be auctioned via a public tender process in January 2008. The
sites are zoned for residential development which will be positive for the
ongoing regeneration of this area where the Company's Property 3 is situated.
The auction is part of the Government's move towards greater transparency in the
land disposal process and is a significant event as only one plot of land has
been sold via a public tender since the handover in 1999. The Government also
recently announced it will be reducing estate tax and waiving stamp duty for
first-time buyers of domestic properties valued at up to US$385,000. This is
part of a move to assist lower income earners and is positive for the Fund's '
entry-level' positioning since it is likely to catalyse increased demand for
affordable housing in Macau.



Government's new initiatives

In his eighth policy address delivered in November, Chief Executive Edmund Ho
reiterated the Government's continued commitment to developing the gaming and
tourism industries, whilst maintaining the fight against corruption and crime.
He also outlined several new policies designed to improve the city's political
and socio-economic status. These include the construction of subsidised
apartments in the North of Macau Peninsula for low income residents which is in
response to rising criticism of the Government's lack of efforts to assist the
poorer segments of the population.



New Casinos / Hotels

In December, Macau witnessed the high-profile launch of MGM Grand Macau,
US-listed MGM Mirage's first project in Asia. The opening signifies that all six
gaming concessions in Macau are finally in operation. SJM, owned by local casino
mogul Stanley Ho, has announced it will be building a new hotel on the site of
its original flagship and Macau's oldest casino, the Lisboa Hotel. Redevelopment
is expected to begin following the full opening of the neighbouring Grand Lisboa
Hotel in 2008.



Looking ahead, attention is likely to focus on the emergence of the Cotai Strip
as the Territory's integrated business, leisure and gaming destination, as a
stream of upscale casino-resort-hotels increasingly dominate the landscape. The
Four Seasons and Shangri-La hotels are due to open in 2008 followed thereafter
by Galaxy's 'Mega Resort', Melco/PBL's 'City of Dreams' and 'Macau Studio City'
backed by eSun Holdings.





Summary



2007 proved to be an unprecedented year for Macau. With a significant amount of
foreign investment capital committed to long term projects, more transparent
government and an increasingly favourable business environment, we continue to
believe that we are at an early stage in the Territory's economic re-rating. The
Company's portfolio of niche, strategically placed properties in key market
segments, leaves it well-positioned and the immediate focus remains on acquiring
further assets which are both attractively valued and clearly differentiated.



The Company's first half results for the period to end December 2007 will be
released in February 2008.



                                    --Ends--



About the Macau Property Opportunities Fund



MPOF, which raised £105 million in a placing and commenced trading on the
Alternative Investment Market of the London Stock Exchange on 5 June 2006, is a
closed-end investment company incorporated in Guernsey. The Company's investment
policy is to provide shareholders with an attractive total return, which is
expected to comprise primarily capital growth, but with the potential for
dividends over the medium to long term.  MPOF focuses on investing in property
opportunities primarily in Macau, but also potentially in the Western Pearl
River Delta region and in exceptional circumstances, greater China.



The Investment Manager of MPOF is Sniper Capital Limited and the Investment
Adviser is Sniper Capital Management Limited.



About Sniper Capital Limited



Sniper Capital is an independent investment manager specialising in property
investment in niche, undervalued and developing markets. The Company's
investment strategy is to identify, acquire and develop properties clearly
differentiated by location, value and sustainability of demand. Sniper Capital
currently manages two funds with combined assets of US$250 million.





For further information:



Website: www.mpofund.com



Public Relations
Hogarth Partnership Limited
Andrew Jaques / Sarah Richardson
Tel: [phone]





Nominated Adviser and Joint Broker

Collins Stewart Europe Limited

Hugh Field

Tel: [phone]





Joint Broker

Shore Capital Stockbrokers Limited

Dru Danford

Tel: [phone]





Company Secretary & Administrator

Heritage International Fund Managers Limited

Mark Huntley / Laurence McNairn

Tel: [phone]





Manager

Sniper Capital Limited

Corporate & Investor Communications

Daisy Tang

Tel: [phone]

Email: [e-mail]

www.snipercapital.com





Stock Codes:



Bloomberg:  MPO LN

Reuters:    MPO.L




                      This information is provided by RNS
            The company news service from the London Stock Exchange