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If Park Hotel CQ Pte Ltd is unable to pay the outstanding amount of $5.92 million by 5pm on June 30, the master lease for 1 Unity Street will be terminated.
Ascott Residence Trust (ART)—a stapled group comprising Ascott REIT and Ascott Business Trust Management Limited Pte Ltd—has issued a notice of forfeiture to its tenant, Park Hotel CQ Pte Ltd.
The notice was issued under a master lease for 1 Unity Street, which was dated 5 April 2013. The 10-year lease commenced on 28 June 2013.
Under ART’s Q1 2021 business update, Park Hotel CQ has been issued a letter of demand to recover sums due under the master lease as of 1 March 2021. The parties were then in talks for matters related to the master lease.
However, an unrelated third party filed an application in the High Court on 7 June to wind up Park Hotel Management—the guarantor under the master lease and Park Hotel CQ’s parent company.
On 18 June, the landlord, Ascendas Hospitality REIT, issued a demand for the outstanding amount of $5.92 million to the guarantor. Ascendas Hospitality REIT is fully owned by Ascott REIT.
Under the notice, the tenant is mandated to pay the outstanding amount by 5pm on 30 June, “failing which Ascott REIT will take steps to repossess the property and liaise with the tenant to ensure a smooth handover of the property and the hotel operations”. Thereafter, the master lease will be terminated.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg