HNA sells Hong Kong development site for over $800M

Chinese conglomerate selling assets to pay off debt

New York /
Mar.March 09, 2018 01:00 PM

Hong Kong, China

It’s like a real estate tag sale. The debt-burdened Chinese conglomerate HNA Group sold a massive Hong Kong development assemblage to local real estate firm Wheelock & Co. for $811 million, the latest in a string of sell-side deals.

That’s about 15 percent more than what HNA paid four the four plots totaling 79,000 square feet between November 2016 and March 2017, Bloomberg reported. CIMB Securities analyst Raymond Cheng said the company likely just about recovered its investment when factoring in closing costs and other expenses.

“They were lucky to be able to sell at these prices,” he told Bloomberg. “The market knows HNA has problems but there were probably so many bidders for this land or otherwise buyers would not have paid such a high price.”

HNA is struggling under $90 billion in debt, much of it coming due this year, and has started to sell assets to pay off loans. It recently sold its Manhattan office tower 1180 Sixth Avenue for $305 million to Northwood Investors and put 245 Park Avenue, which it bought for $2.21 billion in May, up for sale.

The Real Deal broke down HNA’s fall from grace in its March issue. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Central Queens Academy's Ashish Kapadia and United's Chris Jiashu Xu with a rendering of 88-08 Justice Avenue (Linkedin, iStock)
Charter school takes 85K sf in Queens condo building
Charter school takes 85K sf in Queens condo building
(IStock illustration by Kevin Rebong)
Smaller cities look to cash in on shift to remote work
Smaller cities look to cash in on shift to remote work
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
Photo illustration of Mayor Bill de Blasio as Uncle Sam (iStock, Getty/Illustration by Kevin Rebong)
NYC has $1.3B in unpaid property taxes
NYC has $1.3B in unpaid property taxes
Photo illustration of RXR Realty CEO Scott Rechler (Getty, iStock)
Office landlords offer no-wait Covid tests to lure workers back
Office landlords offer no-wait Covid tests to lure workers back
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
Rudin Management's Bill Rudin, 1675 Broadway and Gannett CEO Mike Reed (Getty, Google Maps, Gannett)
Gannett to move its NYC office two blocks north
Gannett to move its NYC office two blocks north
A rendering of the facility at 1029 Newark Avenue in Elizabeth, Fidelco chairman Marc Berson and Elberon Development Group chairman Ann Evans Estabrook (Photos via JLL, Fidelco and Elberon)
Cold storage facility in New Jersey gets $34M loan
Cold storage facility in New Jersey gets $34M loan
arrow_forward_ios

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

Loading...