A plan to sell Eagle Hospitality Trust’s (EHT’s) asset in Texas has fallen through after the buyer, Lockwood Development Partners, failed to meet the deadline for the payment of additional deposits.
Given that this deadline was not met, the sale and purchase agreement for the asset, Crowne Plaza Dallas Near Galleria-Addison (CPDG), was terminated on 4 May.
As reported earlier in the year, the asset was supposed to have been divested for USD18 million as part of EHT’s Chapter 11 process.
REITsWeek reported then that the transaction would have been a write-off of approximately USD40 million from the value declared for CPDG at EHT’s initial public offering (IPO).
Besides CPDG, several other properties that were under EHT’s portfolio are currently undergoing a similar divestment process via a so-called ‘stalking horse’ agreement.
Given the termination, the REIT’s trustee, DBS Trustee, is now “exploring all available options” for the asset and will provide further updates in due course.
Units of EHT have been suspended from trading on the Singapore Exchange (SGX) since March 2020, at USD0.137, down significantly from its IPO price of USD0.88 in May 2019.