EHT scrapping all master leases after 'multitude of defaults'

Uma Devi

Published Wed, Sep 23, 2020 · 09:50 PM

Singapore

TROUBLED Eagle Hospitality Trust (EHT) has issued notices of termination of master lease agreements (MLAs) to the master lessees of all its 18 properties, describing the current arrangement as "unviable".

The termination is slated to occur 10 days after the delivery of the notices, said the stapled group's managers on Wednesday.

They cited "multitude of defaults" under the MLAs by the master lessees, which are part of EHT's sponsor Urban Commons.

Among the ongoing events of default are the "substantially unpaid" monthly fixed rent, variable rent and additional rent for January to August this year for all properties; the repeated failure to pay outgoings such as insurance premiums; and the failure to furnish the full amount of the security deposit required under the MLAs by the due date fo…