HNA closes on $2.21B purchase of 245 Park

Deal is just latest in Chinese conglomerate's wild acquisition spree

New York /
May.May 11, 2017 05:45 PM

Chinese conglomerate HNA Group closed on its $2.21 billion purchase of 245 Park Avenue, or $1,227 per square foot, records show.

The deal marks one of the biggest prices ever paid for a Manhattan office tower and is an example of how Chinese money continues to play a significant role in the New York market despite increased capital controls at home.

Very few Manhattan properties have ever crossed the $2 billion threshold — the list includes 11 Madison Avenue, 3 Bryant Park and the GM Building at 767 Fifth Avenue.

The Real Deal first reported that the company was in contract to buy the property from Brookfield Property Partners and the New York State Teachers’ Retirement System in March.

The 1.8 million-square-foot building, between East 46th and 47th streets, came on the market in November and drew bids from RXR Realty, Blackstone and L&L Holding, among others, TRD reported.

CBRE’s Darcy Stacom and William Shanahan represented the sellers. Stacom was not immediately available for comment, nor was a spokesperson for HNA.

The Chinese company, which owns 25 percent stake in Hilton Worldwide Holdings, has been making a splash in recent months with a series of major cross-sector investments around the world. Among its recent deals, the company, which began as carrier Hainan Airline, recently upped its stake in Deutsche Bank to 9.9 percent.

HNA reportedly financed the deal with a $1.75 billion loan from a consortium of banks led by JPMorgan Chase. Other lenders in the syndicate included Deutsche Bank, Barclays, Natixis and Societe Generale.

Its acquisition spree has led to some speculation that its chairman Chen Feng enjoys a special relationship with the Chinese government, which has enacted strict capital controls on the purchase of foreign assets. China state-backed banks have provided HNA with a $60 billion line of credit, according to public filings obtained by the New York Times.


Related Articles

arrow_forward_ios
Democrats' numerous attempts to close the carried-interest loophole have failed
Developers, rejoice: Carried-interest loophole is saved again
Developers, rejoice: Carried-interest loophole is saved again
257-263 West 34th Street and Cornell Realty’s Isaac Hager (Google Maps, Getty)
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
RXR CEO Scott Rechler and 620 Sixth Avenue (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons)
RXR sues insurers over infectious disease coverage
RXR sues insurers over infectious disease coverage
(Illustration by The Real Deal with Getty Images)
Hamptons rental where fire killed 2 skipped safety inspection
Hamptons rental where fire killed 2 skipped safety inspection
Colette at 767 Fifth Avenue and restaurateur Juan Santa Cruz (Colette, Getty,Pablo Costa Tirado (…, CC BY-SA 3.0, via Wikimedia Commons)
Want to join Safra’s private club at GM Building? It’ll cost you $125K
Want to join Safra’s private club at GM Building? It’ll cost you $125K
Tavros Capital’s Nicholas Silvers and Charney Companies’ Sam Charney in front of 24-05 thru 24-19 Jackson Avenue in Long Island City (Getty Images, Tavros Capital, Charney Companies, Google Maps)
Tavros, Charney plan 55-story rental on long-stalled site
Tavros, Charney plan 55-story rental on long-stalled site
A photo illustration of 450 Park Avenue (left) and 8 Spruce Street (right) (Douglas Elliman, Reading Tom, CC BY 2.0 - via Wikimedia Commons, Getty Images)
CRE investment sales hit $21B in first half of 2022: report
CRE investment sales hit $21B in first half of 2022: report
Planet FItness' Chris Rondeau with 177 Old Country Road (Planet Fitness, Google Maps)
Planet Fitness filling Long Island’s retail vacuum
Planet Fitness filling Long Island’s retail vacuum
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...