DBS Trustee will uphold its legal, regulatory obligations

WE REFER to the article "Could DBS Trustee have done more for EHT unitholders?" published in the Hock Lock Siew column in The Business Times on April 22, 2020. The article is misconceived in stating that DBS Trustee seems to have been "negligent" and we would like to clarify a trustee's duties at law and in contract. DBS Trustee will always uphold its legal and regulatory obligations and act in the best interests of unitholders and holders of stapled securities.

The day-to-day operations of Reits are not managed by trustees but by the Reit manager. The trustee's obligation (in the context of Reits) applies to budget approval and compliance, reviewing financial reports, arrears reports and ensuring good title and insurance to assets. This is true of trustees in all real estate investment structures and was no different for Eagle Hospitality Real Estate Investment Trust (EH-Reit).

An orderly resolution of the situation is in the best interests of all stapled security holders and the market, and this is the outcome that DBS Trustee is working towards.