Sole Shareholder of REIT Manager of EH-REIT Appeals to Singapore Minister for Finance

• MWH files Notice of Appeal
  following the MAS directive to remove the REIT Manager of EH-REIT
• Liquidation, which is
  being proposed by the REIT’s Trustee, should be an absolute last resort

SINGAPORE – Media
OutReach – 17 December 2020– Mandarin West Holdings LLC
(“MWH”), the sole shareholder of Eagle Hospitality REIT Management Pte Ltd
(“REIT Manager”) which is, in turn, the Manager of Eagle Hospitality Real Estate
Investment Trust (“EH-REIT”), has
filed an Appeal to Singapore’s Finance Minister, Heng Swee Keat, on 10 December, 2020 with regards
to a directive issued by the Monetary Authority of Singapore (MAS).

In
a Directive dated 30 November, 2020, the MAS had instructed the Trustee of
EH-REIT to remove the REIT Manager within one month from the date of issuance
of the Directive (or such longer period as the MAS may approve in writing) and
appoint a new manager for EH-REIT pursuant to section 286(14) of the Securities
and Futures Act (Cap. 289) (“SFA”).

Upon
taking professional advice, MWH’s position is that there are meritorious
grounds of appeal with reasonable chances of success. Accordingly, the
appeal against the MAS Directive has been lodged with the Minister under the
SFA. 

MWH
stressed the fact that it has injected millions of dollars of additional cash
into the REIT compared to the income generated by its properties over the same
time-period.

Howard
Wu, former Chairman of the REIT Manager said, “It is unit securityholders, who
will likely suffer at the lack of options they have been provided, with
liquidation being an absolute last resort. We have not been allowed to
implement our strategy — including raising capital — which would, in turn, save
the REIT and preserve unit securityholders’ value. The significant distress to unit
securityholders’ needs to cease, and we believe we are in the best position to
relieve it. Therefore, we are left with no choice but to explore several
avenues including appealing to the MAS to reconsider its decision regarding the
removal of the REIT Manager.”

The issuer is solely responsible for the content of this announcement.