SINGAPORE - Media OutReach
- 22 December 2020 - With regard to the selection of SC Capital as the
replacement manager of Eagle Hospitality REIT (EH-REIT), Urban Commons,
the Sponsor of Eagle Hospitality Trust (EHT), believes that SC Capital's
current proposal will very likely provoke disagreements amongst various interested
parties. This could initiate a chain of reactions and is highly risky for
securityholders.
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Sponsor has provided recommendations and DBS
Trustee ignored their proposals to save the REIT. A substantial
amount of EHT's cash, approximately $25 million, has been spent on professional
consultants who are, surprisingly, not collaborating with the Sponsor to find a
way forward for the benefit of securityholders. The Sponsor believes that all
interested parties should work together to resolve issues for the good of all
securityholders.
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Urban
Commons has the intention to restructure the current REIT manager, to
strengthen management status and cash position. Sponsor to propose a new
partner to the manager, which is subject to MAS approval.
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"We hope that DBS Trustee will make the right decisions to protect
the interests of all securityholders. On the other hand, we are working hard to
engineer the best deal possible for securityholders,
by considering a variety of different options for the REIT. This includes a
whole spectrum of possibilities, such as the possible entry of a white knight, as
well as the potential refinancing or a unique recapitalization plan that suits
this unique scenario," said Howard Wu, Founder and Principal at UC. "While
securityholders may feel they are left with few choices, we believe that
presenting additional options at our proposed EGM will help them see the
potential for their REIT, as well as our continued commitment to help weather
the storm."
The issuer is solely responsible for the content of this announcement.
About Urban Commons
Urban Commons is a
Los Angeles-based real estate investment and development firm with a successful
track record of developing, repositioning, and rebranding assets throughout the
United States. The company focuses on improving under-managed and underutilized
assets by developing innovative solutions that promote optimal economic,
social, and environmental returns.
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Since its founding
in 2008, Urban Commons has owned, operated and developed a variety of real
estate properties including several dozen hotels, apartments, retail, office,
and senior care, throughout the United States including the development of
nearly one million square feet of commercial retail space.
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For more
information on Urban Commons, please visit: https://urban-commons.com/
