Ascott Residence Trust has terminated the master lease on and has taken possession of the property at 1 Unity Street in Singapore as the tenant, Park Hotel CQ, failed to pay the S$5.92 million owed after offset from the S$6.87 million security deposit, the REIT said in a filing to SGX Saturday.
“As the sole shareholder and guarantor of the tenant is under liquidation, the managers will work with the liquidators to recover the outstanding rent and damages due under the master lease,” the REIT said.
“The managers will explore the possible long term options for the property, which may include fresh master leases or management agreements,” the REIT added.
The property will be managed by Ascott International Management Pte. Ltd. (AIMPL) under a six-month management agreement, which may be extended, the filing said. AIMPL is a wholly owned subsidiary of CapitaLand, which is a controlling shareholder of the managers of Ascott Residence Trust
Park Hotel CQ’s master lease on the property began in 2013 and had a 10-year term, the trust said in a June filing.
An unrelated third party had filed a winding-up application in Singapore’s High Court against Park Hotel Management, the guarantor for Park Hotel CQ, in early June, with the landlord — Ascendas Hospitality REIT, which is wholly owned by Ascott REIT — issuing a demand in mid-June for payment of the outstanding balance, a June SGX filing said.