The Monetary Authority of Singapore (MAS) has asked the trustee of Eagle Hospitality REIT, DBS Trustee Limited, to remove Eagle Hospitality REIT Management as the manager of the REIT.
The central bank has also asked DBS Trustee to appoint a new manager as soon as is practical.
The direction follows MAS’s notice of intention (NOI) issued on Oct 26 to direct DBS Trustee to remove Eagle Hospitality REIT’s current manager and to appoint a new one.
See: MAS moves to oust the manager of Eagle Hospitality Trust
In October, the NOI asked the trustee and the manager of Eagle Hospitality REIT to provide reasons why the latter should not be removed from its position.
In response to the NOI, the manager’s shareholder Mandarin West Holdings has provided written submissions, which MAS has “carefully considered”.
“As the written submissions raise no new material facts, MAS has proceeded to issue the direction to the Trustee,” says MAS in a Nov 30 statement.
“MAS continues to have serious concerns with Eagle Hospitality REIT Management’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. MAS will take stern action against any financial institution which does not comply with MAS’ rules and regulations,” it added.