Ascott Residence Trust issues notice of intended forfeiture to Park Hotel CQ

ASCOTT Residence Trust (ART) has issued a notice of intended forfeiture to Park Hotel CQ following outstanding payments relating to a master lease for 1 Unity Street.

The 10-year lease commenced in 2013.

In a filing to the Singapore Exchange on Friday night, ART said that a letter of demand was issued to the tenant to recover sums due under the master lease as at March 1, 2021. The parties were then in talks with respect to the master lease.

However, on June 7, an application for the winding up of Park Hotel Management - the guarantor under the master lease and the parent company of the tenant - was filed in the Singapore High Court by an unrelated third party. On June 18, the landlord, Ascendas Hospitality Reit, issued a demand for about S$5.92 million to the guarantor. Ascendas Hospitality Reit is owned by Ascott Reit.

The tenant is required to pay the outstanding amount by 5pm on June 30, failing which Ascott Reit "will take steps to repossess the property and liaise with the tenant to ensure a smooth handover of the property and the hotel operations", it said. "The master lease will then be terminated."

ART is a stapled group comprising Ascott Reit and Ascott Business Trust.

Units in ART closed at S$1.02 on Friday, up one Singapore cent or 1 per cent.