SC Capital unit proposed as Eagle Hospitality Reit's new manager
Singapore
SCCPRE Hospitality Reit Management has been proposed as the new manager for Eagle Hospitality Real Estate Investment Trust (EH-Reit), part of stapled group Eagle Hospitality Trust (EHT). The announcement was made a day after the Monetary Authority of Singapore (MAS) ordered EH-Reit's trustee to remove the current manager within a month and to appoint a new manager "as soon as practicable".
In a bourse filing on Tuesday morning, DBS Trustee confirmed it will remove the incumbent manager.
The proposed incoming manager was decided following the trustee's discussions with EHT's financial adviser Moelis. They evaluated proposals after a request-for-proposal (RFP) process "that explored all options available to EHT to protect the interests of the stapled securityholders", said DBS Trustee.
The proposed manager is part of the SC Capital real estate private-equity group controlled and owned by Suchad Chiaranussati.
The SC Capital group includes Singapore-based SC Capital Partners, a fund manager focused on real estate investments in the Asia-Pacific; as well as the managers of two listed Asian Reits: Japan Hotel Reit Investment Corp and Thailand Prime Property Freehold and Leasehold Reit.
DBS Trustee said the RFP took place over three months with 15 interested parties, concluding on Oct 28.
The syndicate of lenders under the Bank of America (BofA) facilities agreement was receptive to engaging in discussions with SCCPRE Hospitality Reit Management, DBS Trustee said. BofA is the administrative agent for lenders that earlier demanded EHT repay a US$341 million loan and restricted access to several bank accounts of the Reit and master lessees.
DBS Trustee said the proposed manager's proposal was more compelling given SC Capital group's track record, including the turnaround of Japan Hotel Reit. The group also has relationships with hospitality players, and has a track record of raising capital from financial partners for its private fund and listed Reit platforms. SCCPRE Hospitality Reit Management's proposal also included the long-term rehabilitation of EH-Reit.
The manager's appointment is subject to it agreeing with DBS Trustee on proposals for EHT as well as to approval at an extraordinary general meeting, among other things.
Trading of EHT stapled securities has been suspended since March.
