Corporate digest

Eagle Hospitality Trust

EAGLE Hospitality Trust (EHT) properties' valuation, as of Aug 31, is US$726.9 million - a 38.1 per cent decrease from its initial public offering (IPO) valuation of US$1.21 billion, showed an exchange filing.

The initial valuation was as at Dec 31, 2018, ahead of EHT's IPO.

Professional services firm Colliers noted in its valuation report that the decrease is due to the negative impact of Covid-19 on property operating metrics. This led to an increase in risk premium being demanded by investors in the hospitality sector, the real estate investment trust (Reit) manager said.

Due to the impact of Covid-19, valuers in the US have also provided "upon stabilisation" values to take market circumstances into consideration, the Reit manager said, which puts the value at US$899.6 million. However, this does not indicate a return to pre-Covid levels, but that the property is achieving fair market share, Colliers noted.

Sim Leisure Group

THEME park developer and operator Sim Leisure Group on Friday issued a clarification on an article published by The Business Times regarding its proposed acquisition of Rakan Riang, licensee of family attraction KidZania.

It said it is "not avoiding 'seeking shareholders' approval for the deal and seeking an independent valuation of the asset'".

The company said it will, through its sponsor, consult the Singapore Exchange Securities Trading on the applicability of the requirements of the Catalist Rules to The Proposed Acquisition. It added that it will make additional announcements when there are further material developments.

Wee Hur Holdings

AN AUSTRALIAN subsidiary of property group Wee Hur Holdings is set to buy a freehold plot of land in Sydney for A$46.1 million (S$45.1 million), the company said on Friday. The group intends to redevelop the 1,366 square-metre plot into a purpose-built student accommodation with 384 beds, subject to approval.

The acquisition is not expected to have a material impact on the earnings per share and net tangible assets per share of the group for the current financial year ending Dec 31.