HNA Group, the Chinese investment company behind the the $2.2 billion buy of 245 Park Avenue, has increased its ownership stake in Deutsche Bank. The extra shares were obtained through the British subsidiary C-Quadrat Investment AG and give HNA 9.92 percent ownership of Deutsche, more than doubling its previous stake.
U.S. regulators will be closely monitoring the transaction, the Wall Street Journal reported, as they would any time an investor attains a 10 percent or higher stake in a company that does as much investment activity in America as Deutsche.
HNA is investing heavily in Manhattan at a time when capital controls by the Chinese government are supposed to rein in foreign investment. In response, the company says its investments abroad are financed with cash flow from existing overseas assets.
The company has at least $9.7 billion in bonds outstanding, making it one of the most indebted companies in China, which as already led some financial institutions there to stop lending to it. Despite that, HNA has announced $4 billion in international deals since January.
(To view more financing transactions involving Deutsche Bank, click here)