Urban Commons (UC)

Increasingly, questions are arising from last May’s initial public offer (IPO) of Eagle Hospitality Trust (EHT). Among other things, was the IPO an elaborately thought out financially engineered transaction to net the sponsor, Urban Commons, the monies?

Eagle Hospitality Trust formed a series of subsidiaries to hold its 18 properties which are referred to as master lessors. Its sponsor Urban Commons also formed 18 subsidiary companies some of which are Cayman registered to act as master lessees.

Eagle Hospitality Trust’s manager has made several announcements this year on various agreements that its sponsor Urban Commons has defaulted on. Among them are non-disturbance agreements and key money agreements.

In a report by the Orlando Weekly on May 25, which referred to Urban Commons problems, including its failure to pay cleaning bills of US$420,000, it emerges that its Holiday Inn Resorts Orlando Suites - Waterpark, is valued at US$71 million, a marked dif

Since its debut on the SGX in May last year, units in EHT have plummeted some 82.4% from its IPO price of 78 US cents.