You are here
EHT's sponsor Urban Commons partners US real estate investor to grow portfolio
URBAN Commons (UC), the sponsor of beleaguered Eagle Hospitality Trust (EHT), has announced a strategic partnership with Texas-based real estate investor Encore Enterprises to grow its platform and hotel portfolio. (see clarification note)
As at press time, Encore claims to have completed over 100 transactions amounting to a total of more than US$2.7 billion.
Encore focuses on three segments of the property market - commercial, hospitality and multi-family properties. According to its website, the company invests in "high-quality" assets that are not fully stabilised, and are hence "not a target for core investors". It also pays attention to new developments at "attractive" projected yields, as well as assets that need recapitalisation or major physical improvement.
The company said its focus on three market sectors allows it to direct its capital and resources to another sector with a "more bullish trajectory" in the event a sector nears its peak in the market cycle or moves out of favour.
Commenting on the new partnership, Howard Wu, UC's founder and principal, said: "Even though we have targeted acquisitions at different stages of renovation or refurbishment, our overall strategy is shared, which is to unlock additional potential and add value to quality assets."
UC also claimed it has reached out to EHT's trustee, DBS Trustee, and its advisors on "multiple occasions" with a plan to "provide critically needed financial support" to the Reit but to no avail.
UC said its plan for the Reit includes minimising costs, controlling unnecessary expenses and preventing dilution for unitholders. (see clarification note)
Clarification note: This article has been updated after a press statement issued on behalf of Urban Commons was retracted and replaced.