EHT's New Jersey hotel sold for US$23.5m, insufficient to cover entire mortgage loan

THE sale of Eagle Hospitality Trust's (EHT) New Jersey hotel Delta Woodbridge (DW) was completed on Dec 8 for US$23.5 million, DBS Trustee announced on Thursday (Dec 16).

Net proceeds from the disposal were used to offset the outstanding principal balance of a US$37.6 million DW mortgage loan, but were understood to be insufficient to cover the entire balance.

The remaining amount will allegedly continue to be payable by EHT's Chapter 11 entity EHT US1, the trustee of Eagle Hospitality Real Estate Investment Trust (EH-Reit) said in a bourse filing.

The disposal comes after 3 months of marketing efforts by the engaged commercial real estate brokerage company, Eastdil Secured, which found US$23.5 million to be the highest and best offer for DW.

The Superior Court of New Jersey on Jul 23 entered a final judgement for the foreclosure of the DW for some US$37.6 million following the application of Wells Fargo National Association.

EHT is a stapled group comprising EH-Reit and the dormant Eagle Hospitality Business Trust. Trading in its stapled securities has been suspended since March 2020.