The Queen Mary Longbeach, a property of Eagle Hospitality Trust. (Eagle Hospitality Trust)

The Monetary Authority of Singapore (MAS) has issued a notice of intention (NOI) that seeks to remove the manager of Eagle Hospitality Trust’s (EHT’s) manager.

The NOI was issued to DBS Trustee Limited, the trustee of EHT’s REIT component.

This is in view of numerous breaches of the Securities and Futures Act (SFA) by the REIT’s manager, and “serious concerns over its ability to comply with rules and regulations”, said the MAS.

Since it was licensed in May 2019, the REIT manager has committed multiple breaches of the SFA, including breaches of the minimum base capital and financial resources requirements, said the MAS.

These financial requirements were breached for the first time in the fourth quarter of 2019 but only informed MAS of these breaches in April 2020, the regulator added.

“MAS has serious concerns about the EH-REIT management’s ability and commitment to comply with MAS’ rules and regulations”.

DBS Trustee and the REIT’s manager have been given 10 business days to respond upon receipt of the NOI.

“MAS expects all financial institutions to have rigorous systems and processes to ensure compliance with regulatory requirements at all times”, the regulator emphasised.

EHT remains suspended from trading on the Singapore Exchange, and its last done price from March 2020 was at SGD0.14.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.