The sole shareholder of Eagle Hospitality Reit Management (EHRM), manager of Eagle Hospitality Real Estate Investment Trust (EH-Reit), has filed an appeal to Finance Minister Heng Swee Keat over a directive on its removal.
Mandarin West Holdings - the shareholder - noted yesterday that a Monetary Authority of Singapore (MAS) directive dated Nov 30 told the trustee of EH-Reit to remove EHRM and appoint a new manager.
"Mandarin West Holdings' position is that there are meritorious grounds of appeal with reasonable chances of success," it said in a statement. "Accordingly, the appeal against the MAS directive has been lodged with the minister under the Securities and Futures Act."
Mandarin West Holdings said it has "stressed the fact that it has injected millions of dollars of additional cash into the Reit compared to the income generated by its properties over the same time period".
The MAS order last month for the removal of EHRM also came with a directive to DBS Trustee, the trustee of EH-Reit, to appoint a new manager "as soon as practicable". SCCPRE Hospitality Reit Management was identified earlier this month as the proposed new manager.
"MAS continues to have serious concerns with EHRM's ability and commitment to comply with MAS' rules and regulations, given the numerous breaches of the Securities and Futures Act, including recurrent and ongoing breaches of capital and financial requirements," the regulator said last month.
Trading in Eagle Hospitality Trust's stapled securities, comprising EH-Reit and Eagle Hospitality Business Trust, was voluntarily suspended on March 24.
THE BUSINESS TIMES