According to Urban Commons, prior to March, there was no default from operations and yet, since the onset of Covid-19, the sponsor has been targeted with allegations. This is probably in reference to certain statements made by EHT’s manager on SGX which does not quite tally with Urban Commons statements.
In a somewhat audacious move, on Aug 12, Urban Commons, the sponsor of Eagle Hospitality Trust when it listed in May last year, issued a press release full of angst. It says in a Breach Notice sent to EHT, the master lessee of EHT’s properties (which is also Urban Commons), has intimated that the amount of funds it has injected into EHT over the past year are outstanding and due for repayment.
As background, EHT owns the famed Queen Mary Long Beach which it acquired at IPO in May last year for more than US$139 million ($191 million). The sponsors were paying a ground lease of just US$300,000 a year for the ship and adjacent property.
