SINGAPORE (May 16): The trustee-managers of Eagle Hospitality Trust (EHT) have registered its prospectus with the Monetary Authority of Singapore in connection with the offering of 580.6 million stapled securities at the issue price of US$0.78 per stapled security to raise US$453 million ($620 million) in gross proceeds.
See: Another US hospitality REIT lodges its prelim prospectus
The offering of 580.6 million stapled securities comprises an international placement of 535.7 million stapled securities to investors, including institutional and other investors in Singapore; and an offering of 44.9 million stapled securities to the Singapore public.
Investors subscribing for stapled securities under the public offer will pay the offering price in Singapore dollars of $1.071.
EHT is a US hospitality specialist with an invested sponsor and a portfolio of full service hotels in the US markets. Its initial portfolio comprises 18 primarily freehold hotel properties located in the US, with a total of 5,420 rooms and an aggregate valuation of US$1.27 billion.
All but one of EHT’s hotels are branded by and operated under franchise agreements with the three largest global hotel franchisors – Marriott, Hilton and IHG.
Cornerstone investors including DBS Banks and Gold Pot Developments have entered into subscription agreements to subscribe for an aggregate of 144.9 million stapled securities, representing 16.7% of the total number of stapled securities in issue immediately after the listing.
EHT will distribute 100% of its annual distributable income for the period from the date of listing to the end of 2020, and thereafter, at least 90% of its annual distributable income.
Distributions will be made on a semi-annual basis, for each six-month period ending 30 June and 31 December.
Based on the offering price, this represents an annualised distribution yield of 8.2% for s019 and 8.4% for projection year 2020.
The sponsor of EHT is Urban Commons, LLC, a privately-held real estate investment and development firm that is active across a range of property types with a specific emphasis on hotels.
Urban Commons, founded in 2008 by Howard Wu and Taylor Woods, will hold a 15.2% stake in EHT upon listing.
