Urban Commons, the sponsor of Eagle Hospitality Trust (EHT), says it believes SC Capital’s current proposal is “very likely” to provoke disagreements among various interested parties.

SCCPRE Hospitality REIT Management, which is part of the SC Capital Group, was proposed as the new REIT manager for EHT by DBS Trustee on Dec 1.

See: Eagle Hospitality Trust trustee proposes SCCPRE Hospitality REIT Management as new REIT manager

In a statement dated Dec 22, Urban Commons says it has provided recommendations to “save the REIT”, that were ignored by DBS Trustee.

“A substantial amount of EHT’s cash, approximately $25 million, has been spent on professional consultants who are, surprisingly, not collaborating with the Sponsor to find a way forward for the benefit of securityholders,” says Urban Commons in a statement.

“The Sponsor believes that all interested parties should work together to resolve issues for the good of all securityholders,” it adds.

Urban Commons further elaborated that it intends to restructure the current REIT manager in a bid to the REIT’s strengthen management status and cash position.

It says that it will propose a new partner to the manager, which is subject to the approval of the Monetary Authority of Singapore (MAS).

“We hope that DBS Trustee will make the right decisions to protect the interests of all securityholders. On the other hand, we are working hard to engineer the best deal possible for securityholders, by considering a variety of different options for the REIT. This includes a whole spectrum of possibilities, such as the possible entry of a white knight, as well as the potential refinancing or a unique recapitalization plan that suits this unique scenario,” says Howard Wu, founder and principal at Urban Commons.

“While securityholders may feel they are left with few choices, we believe that presenting additional options at our proposed EGM will help them see the potential for their REIT, as well as our continued commitment to help weather the storm,” Wu adds.