The Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), and MAS today announced new measures to provide real estate investment trusts listed on the Singapore Exchange (S-REITs) with greater flexibility to manage their cash flows and raise funds amid a challenging operating environment due to COVID-19.
MAS and SGX RegCo to Safeguard Interests of Unitholders of Eagle Hospitality Trust
Singapore, 20 April 2020...The Monetary Authority of Singapore (MAS) announced today that it has directed the Manager
2. Trading of Eagle Hospitality Trust (EHT)
3. To safeguard the interests of unitholders of EH-REIT, MAS has directed the Manager of EH-REIT to obtain the approval of the Trustee before making any payments or transfers of EH-REIT’s funds. MAS has also directed the Manager of EH-REIT to restore its minimum base capital and financial resources to comply with MAS’ requirements; the Manager has been in breach of these requirements
4. SGX RegCo has queried the Manager of EH-REIT on the circumstances resulting in the voluntary suspension of EHT’s units, and directed the Manager of EH-REIT to make its response public. On 20 April 2020, EHT announced its responses via SGXNet . SGX RegCo is reviewing the responses and will follow up with EHT on any areas of concern.
5. MAS and SGX RegCo are looking into possible breaches of relevant laws and regulations as well as listing rules and will take regulatory and enforcement actions where appropriate.
1. In March and April 2020, the Manager of EH-REIT announced
2. To increase the liquidity of EH-REIT and remedy delinquencies in rent payments from the master lessees, the Manager of EH-REIT had intended to draw down US$12.5 million of the security deposits. This brought the rental delinquencies to the attention of its lenders, which in turn led to the lenders issuing a notice of default and acceleration on a US$341 million loan. As a result of this sequence of events, trading of EHT’s units on SGX was suspended on 24 March 2020 and dividends declared on 17 February 2020, which were due to be distributed on 30 March 2020, were not paid out to unitholders.