The manager of Ascott Residence Trust has issued a notice of intended forfeiture to its tenant, Park Hotel Clarke Quay, on June 25.
The notice was issued under a master lease for 1 Unity Street dated April 5, 2013, with a term of 10 years commencing June 28, 2013.
According to ART’s business update in the 1QFY2021, a letter of demand was issued to the hotel to recover the sums due under the master lease as at March 1.
Thereafter, the parties were in negotiations pertaining to the master lease.
Separately, an unnamed third party filed an application in the High Court on June 7 to wind up Park Hotel Management, who is the guarantor under the master lease and parent company of Park Hotel Clarke Quay.
The manager of ART, on June 18, issued a demand for the outstanding amount of $5.9 million to the guarantor, to which Park Hotel Clarke Quay is required to pay on June 30.
Should the payment not take place by the stipulated date, Ascott REIT will take steps to repossess the property. The master lease will then be terminated.
The managers add that they are considering “possible options” for the property should the latter happen.
Units in ART closed 1 cent higher or 1.0% up at $1.02 on June 25.
Photo of Park Hotel Clarke Quay: ART
