Sole Shareholder of REIT Manager of EH-REIT Appeals to Singapore Minister for Finance

December 17, 2020 - 03:56
Sole Shareholder of REIT Manager of EH-REIT Appeals to Singapore Minister for Finance

  • MWH files Notice of Appealfollowing the MAS directive to remove the REIT Manager of EH-REIT
  • Liquidation, which isbeing proposed by the REIT's Trustee, should be an absolute last resort

SINGAPORE - MediaOutReach - 17 December 2020 - Mandarin West Holdings LLC("MWH"), the sole shareholder of Eagle Hospitality REIT Management Pte Ltd("REIT Manager") which is, in turn, the Manager of Eagle Hospitality Real EstateInvestment Trust ("EH-REIT"), hasfiled an Appeal to Singapore's Finance Minister, Heng Swee Keat, on 10 December, 2020 with regardsto a directive issued by the Monetary Authority of Singapore (MAS).


Ina Directive dated 30 November, 2020, the MAS had instructed the Trustee ofEH-REIT to remove the REIT Manager within one month from the date of issuanceof the Directive (or such longer period as the MAS may approve in writing) andappoint a new manager for EH-REIT pursuant to section 286(14) of the Securitiesand Futures Act (Cap. 289) ("SFA").


Upontaking professional advice, MWH's position is that there are meritoriousgrounds of appeal with reasonable chances of success. Accordingly, theappeal against the MAS Directive has been lodged with the Minister under theSFA. 


MWHstressed the fact that it has injected millions of dollars of additional cashinto the REIT compared to the income generated by its properties over the sametime-period.


HowardWu, former Chairman of the REIT Manager said, "It is unit securityholders, whowill likely suffer at the lack of options they have been provided, withliquidation being an absolute last resort. We have not been allowed toimplement our strategy -- including raising capital -- which would, in turn, savethe REIT and preserve unit securityholders' value. The significant distress to unitsecurityholders' needs to cease, and we believe we are in the best position torelieve it. Therefore, we are left with no choice but to explore severalavenues including appealing to the MAS to reconsider its decision regarding theremoval of the REIT Manager."

The issuer is solely responsible for the content of this announcement.