DBS Trustee Limited, the trustee of Eagle Hospitality Trust (EHT), has confirmed it will remove the manager for Eagle Hospitality REIT, in compliance with the directive issued by the Monetary Authority of Singapore (MAS) on Nov 30.
See: MAS moves to oust the manager of Eagle Hospitality Trust and MAS orders removal of Eagle Hospitality REIT manager
According to the statement issued on Dec 1, DBS Trustee acknowledged that the removal of the current manager will serve the interests of EHT’s stapled securityholders as the present circumstances of EHT requires that “any recapitalisation and restructuring proposal be presented” to the stapled securityholders as soon as possible.
“It would be in the interests of EHY to facilitate the managerial transfer process by removing the current manager of EH-REIT in according with the trust deed and subject to compliance with applicable laws,” it added.
Following the announcement, DBS Trustee announced that it has identified SCCPRE Hospitality REIT Management as the proposed new REIT Manager for EH-REIT out of 15 interested parties.
SCCPRE Hospitality REIT Management is a wholly-owned subsidiary of SCCPRE Nineteen.
It is part of the SC Capital Group, which also counts SCCPRE, SC Capital Partners, a fund manager focused on real estate investments in Asia Pacific, as well as the REIT managers of two Asia-listed REITs Japan Hotel REIT Investment Corporation, and Thailand Prime Property Freehold and Leasehold REIT.
SCCPRE Hospitality REIT Management was eventually chosen after a three-month-long request for proposal (RFP) process due to the SC Capital Group’s track record of managing and delivering strong asset performances including turning around the Japan Hotel REIT.
The company was also chosen for SC Capital Group’s network of relationships with various players in the hospitality sector, its track record in raising capital from its financial partners for its private fund and listed REIT platforms, as well as other reasons.
The appointment and confirmation of SCCPRE Hospitality REIT Management as the manager of EH-REIT is subject to the agreement on the terms of the proposals for EHT by SCCPRE Hospitality REIT Management between itself and DBS Trustee.
It is also subject to regulatory approvals and relevant licenses being obtained, as well as approval from EHT’s stapled securityholders at an extraordinary general meeting (EGM) to be convened in due course.
