Two Eagle Hospitality Trust substantial unitholders sell part of their stakes

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Two of Eagle Hospitality Trust’s large unitholders have sold part of their stakes, while remaining above the 5 percent threshold to be considered “substantial” stakeholders, filings to SGX said Friday.

Claydon Hill Investments disposed of 1.26 million Eagle Hospitality Trust units in a market transaction at US$0.659 each on 25 October, Frank Shih Chi Yuan said in a filing to SGX. Claydon Hill Investments is wholly owned by Frank Yuan, the filing said.

The company’s direct interest and Frank Yuan’s deemed interest each fell to 14.99 percent from 15.13 percent due to the transaction, the filing said.

On Friday, the Business Times reported Frank Yuan, Eagle Hospitality Trust’s largest unitholder, was also the CEO of ASAP Holdings, which sold six hotels to the founders of the trust’s sponsor, who then injected them into the REIT. ASAP Holdings has also advised Eagle Hospitality Trust’s sponsor on at least five other hotel acquisitions, the article said. The relationships were disclosed previously, although the parties said they weren’t required to do so, the Business Times reported.

In addition, Compass Cove Assets disposed of 2.53 million units at US$0.58 in a market transaction on 29 October, Norbert Shih Hau Yuan said in a separate filing to SGX. Compass Cove Assets is wholly owned by Norbert Yuan, the filing said.

Compass Cove Assets’ direct interest and Norbert Yuan’s deemed interest each fell to 11.71 percent from 12 percent previously, due to the transaction, the filing said.

In a later filing, Norbert Yuan said Compass Cove disposed of 2.09 million units at US$0.558 each in a market transaction on 30 October.

As a result, Compass Cove Assets’ direct interest and Norbert Yuan’s deemed interest each fell to 10.85 percent from 11.09 percent previously, the later filing said.

The share sales follow reports of issues with one of Eagle Hospitality Trust’s properties, the Queen Mary, a decommissioned ocean liner which has been converted into an upscale hotel with 347 rooms; it is moored in Long Beach, California.

Eagle Hospitality Trust confirmed Monday that neither the REIT nor its sponsor, Urban Commons, were in default of the terms of the ground lease for the Queen Mary property.

The trust had rebutted Thursday claims in an Edge Singapore article that the Queen Mary, one of its 18 U.S. hospitality properties, has fallen into structural disrepair and could be found in default.

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