Eagle Hospitality REIT fails to sell Texas property
The potential buyer of Crowne Plaza Dallas Near Galleria-Addison did not follow through with on time payment.
Eagle Hospitality REIT was not able to dispose of a Texas property that it had previously called “a drain on a limited pool of funds”.
Crowne Plaza Dallas Near Galleria-Addison was initially being sold for US$18m (approximately $23.8m) to Lockwood Development Partners. But following an April 26 agreement, the price was revised upwards to US$18.5m, or approximately $24.8m. This required Lockwood to pay additional deposits, with a deadline of May 3.
“As a result of the Buyer's failure to timely fund the 3 May Additional Deposit, and in accordance with the terms of the Purchase and Sale Agreement (as amended by the Supplemental Agreements), the Initial Deposits that have already been released tothe Seller-Owner's designated accountare and shall remain non-refundable to the Buyer and shall be retained from and after the Termination Date,” the REIT said in a statement.
The company is currently exploring more options in respect of the Crowne Plaza property.