Urban Commons is the sponsor of EHT. The owners of Urban Commons, Howard Wu and Taylor Woods, own the manager too. Urban Commons is the master lessee of the properties and pays a ground rent of US$300,000 a year to the City of Long Beach for the Queen Mary.
SINGAPORE (Apr 24): The suspended Eagle Hospitality Trust is a stapled security comprising of EH-REIT which is the active part of the stapled security, and a dormant business trust. In May last year, EHT raised some US$565 million in an IPO. The portfolio comprises 18 assets valued at US$1.27 billion. The portfolio includes the famed Queen Mary Long Beach, a stationary ship that was valued at US$159.4 million.
Queen Mary’s valuation is based on its cash flow. According to valuers HVS and Colliers, Queen Mary’s master lease is for 20 years with an option to extend for a further 14 years. Its base rent is meant to be US$10.4 million a year, and variable rent amounting to 8% of gross operating profit. Among the conditions for Queen Mary’s hefty valuation, and also for the other 17 properties, includes a rental guarantee from the REIT’s sponsor for nine months, the master lease rent, and the variable rent.
