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EHT's manager says ship repair cost of US$235 million grossly inaccurate as units trade at huge discount to NAV

Goola Warden
Goola Warden10/28/2019 05:57 PM GMT+08  • 3 min read
EHT's manager says ship repair cost of US$235 million grossly inaccurate as units trade at huge discount to NAV
 
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SINGAPORE (Oct 28): Following an Oct 23 report by The Edge Singapore titled “Eagle Hospitality Trust could get wings clipped as key asset The Queen Mary sinks into disrepair”, the Singapore Exchange queried EHT’s manager to quantify the total cost of ship repairs, provide further details on how this will affect the operations of the trust, the implication on the impact of the valuation of The Queen Mary and how the Trust intends to finance such costs of repairs.


See: Eagle Hospitality Trust could get wings clipped as key asset The Queen Mary sinks into disrepair

TES had reported that Urban Commons – EHT’s sponsor - is reported to have taken on the lease three years ago despite a marine survey that unveiled that the ship’s deteriorating condition was “approaching the point of no return”. According to that report, the total cost of ship repairs could range from US$235 million ($320 million) to US$289 million. In addition, it estimated that the work would take approximately five years to complete, with some 75% of repairs deemed “urgent”.

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