• EHT unitholders have rejected SC asreplacement Manager; Lengthy restructuring efforts not in best interests ofunitholders, causing depletion of REIT's cash reserves; Sponsor constantlydemonstrates its efforts to save the REIT
• Sponsor's plans to rescue REITblocked since August which, if acted upon, would have set the REIT onto path ofrecovery, instead of causing damage due to internal differences
• While successful businesses fightfor unity during the pandemic, SC and the Trustee's proposal would haveprovoked conflict and driven the REIT into further hardship

SINGAPORE - MediaOutReach - 30 December 2020 - Unitholders of EagleHospitality Real Estate Investment Trust (EH-REIT) today rejected SC CapitalPartners (SC) as its replacement Manager at a 2:00 PM EGM (ExtraordinaryGeneral Meeting), held via a digital webcast.

Resolutions 1 to 4 were inter-conditional suchthat they all had to be carried or fall together, although Resolutions 1, 3 and4 were Ordinary Resolutions (requiring more than 50% of unitholders vote) andResolution 2 was an Extraordinary Resolution (requiring more than 75% ofunitholders vote). Votes were submitted electronically no later than 2:00 PM onDecember 27th, 2020.

After the results of the voting were announcedtoday, it was found the SC was rejected as the replacement manager.

Urban Commons (UC), the Sponsor of EH-REIT, saidunitholders obviously want additional options, and it reiterated that it shouldbe allowed to table its plans devised since August 2020, which are in the bestinterests of the unitholders. Since August, the Sponsor has attempted to tablemultiple plans to demonstrate the best path to save the REIT but it has beenblocked from presenting the plans to unitholders.

"We believe that unitholders recogniseSC's lack of experience in the US market, which is mature, unique and dynamic",said Howard Wu, Principal at UC. "The current pandemic has highlightedstructural complexities which, thanks to our experience in both the US marketand in the REIT property portfolio, puts us in a strong position to address. Eversince our powers as REIT Manager had been restricted, we have witnessed theREIT's cash reserves being depleted through unnecessary restructuring effortson the recommendations of the REIT's advisors and DBS Trustee. How is itpossible that our plans, which are designed with the best interest of unitholders,remain unseen by unitholders? At the same time, alternative plans tabled by theTrustee have been rejected by unitholders. Based on today's vote, unitholdersclearly agree with our view that we are not heading in the right direction. Nowis the time to unite and act fast to save our REIT, and avoid liquidation atall costs, which would be disastrous to all parties involved."

UC also said that unitholders saw highlyuncertain elements at EH-REIT's EGM that could allow the REIT vehicle to be driveninto more hardship. In particular, the fact that the REIT's US$89.0 millionunsecured loan, taken from Lodging USA Lendco, LLC (Lendco), is currently pastdue and in default, whereas EHT's EGM stated it is not. Lendco has, on 14August 2020, sent out the notice of default to EHT. This kind of action createsuncertainty and may cause a major conflict with the lender. Furthermore, theattempt to remove the Manager during a global pandemic is additional, internal,conflict that will likely provoke further divisive actions between parties,potentially resulting in the removal of the master lease. The Sponsor of EHTremains adamant that now is the time to unite to save the REIT.

Wu added: "SC's plan lacked a financialcommitment, of own capital, to the REIT. I can understand whyunitholders may be skeptical about a new Manager that has not contributedcapital, and therefore, does not have a real stake in the REIT. We believe thisis a major contributing factor in SC not receiving approval, as well as their plannot outlining the injection or raising of capital to help the REIT throughthese turbulent times. In addition, we saw some alarming elements to SC'sproposal that could have caused unnecessary conflict between invested partiesat the detriment of unitholder value, and we are pleased that unitholdersrecognised the same."

The issuer is solely responsiblefor the content of this announcement.

About Urban Commons

UrbanCommons is a Los Angeles-based real estate investment and development firm witha successful track record of developing, repositioning, and rebranding assetsthroughout the United States. The company focuses on improving under-managedand underutilized assets by developing innovative solutions that promoteoptimal economic, social, and environmental returns.

Since itsfounding in 2008, Urban Commons has owned, operated and developed a variety ofreal estate properties including several dozen hotels, apartments, retail,office, and senior care, throughout the United States including the developmentof nearly one million square feet of commercial retail space.

For moreinformation on Urban Commons, please visit: https://urban-commons.com/