Crowne Plaza Dallas Near Galleria-Addison. (Photo: Google Maps)Crowne Plaza Dallas Near Galleria-Addison. (Photo: Google Maps)

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).

Related: Eagle Hospitality Trust poised for USD40 million write-off in Texas hotel sale

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.

Related: Eagle Hospitality Trust investors stare down USD615 million loss with 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.

By Shariffa Al-Habshee

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