Appeal on removal of EH-Reit's manager unsuccessful: MAS

MAS' earlier direction to DBS Trustee on Nov 30 remains in effect and the trustee is required to comply with the direction.
MAS' earlier direction to DBS Trustee on Nov 30 remains in effect and the trustee is required to comply with the direction.ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - The Monetary Authority of Singapore (MAS) confirmed on Sunday that the appeal from the shareholder of Eagle Hospitality Reit's (EH-Reit) manager regarding the directive on its removal has not been accepted.

MAS' earlier direction to DBS Trustee on Nov 30 remains in effect and the trustee is required to comply with the direction, said an MAS spokesperson.

Mandarin West Holdings (MWH), the sole shareholder of EH-Reit's manager, had on Dec 10 filed an appeal to Finance Minister Heng Swee Keat against its removal.

The directive from MAS dated Nov 30 instructed the trustee of EH-Reit to remove EH-Reit's manager within one month from the date of issuance of the directive, or such longer period that MAS may approve in writing, and appoint a new manager for EH-Reit.

Following the directive, SCCPRE Hospitality Reit Management was identified earlier this month as the proposed new manager.

MAS' directive follows a Notice of Intention issued on Oct 26 on the removal, in view of "numerous" breaches of the Securities and Futures Act by EH-Reit's manager, as well as "serious concerns" over the manager's ability to comply with rules and regulations.

MAS said last month it received written submissions from MWH in response to the notice and had "carefully considered" these. However, as the written submissions raised "no new material facts", it proceeded to issue the directive to DBS Trustee.

Trading in Eagle Hospitality Trust's stapled securities - comprising EH-Reit and Eagle Hospitality Business Trust - was voluntarily suspended on March 24 this year.