Singapore’s SCCPRE Hospitality REIT Management (SCCPRE-HRM) has been proposed as the new manager of the Eagle Hospitality Real Estate Investment Trust (EH-REIT), the latter’s trustee, DBS Trustee, said in a press statement.
SCCPRE-HRM is a wholly-owned arm of SCCPRE Nineteen, part of SC Capital Group controlled by its founder Suchad Chiaranussati.
The announcement by DBS Trustee came a day after it received a directive from the Monetary Authority of Singapore (MAS) to remove the incumbent manager and appoint a new one within one month. However, the appointment of SCCPRE-HRM as the new manager of the Eagle Hospitality REIT will be subject to regulatory approvals and relevant licences.
Eagle Hospitality REIT is undergoing a recapitalisation and restructuring exercise which includes the appointment of the new manager. In March 2020, the Eagle Hospitality Trust defaulted on a $341 million loan facility, per media reports. Since June 2020, EHT was being investigated by MAS and the Commercial Affairs Department of the Singapore Police Force.
The proposal for an incoming manager was decided following DBS Trustee’s discussions with Eagle Hospitality REIT’s financial advisor Moelis. They evaluated proposals received under a request-for-proposal (RFP) process, said DBS Trustee. The RFP process took place over the last three months and saw a total of 15 interested parties participating in this process.
The proposal from SCCPRE-HRM was considered most compelling as it is backed by SC Capital Group’s track record of managing and delivering strong asset performances, said DBS Trustee. Besides, SC Capital Group also has a network of relationships with various players in the hospitality sector, as well as in raising capital from its financial partners.
The compliance with MAS’ directive is expected to serve the interests of stapled security holders.
Eagle Hospitality-REIT is part of EHT which lists 18 US hotel properties on the Singapore Stock Exchange (SGX). EHT’s stock was voluntarily suspended on March 24, this year following the default on the loan facility.