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
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Two of the eleven properties under threat of foreclosure (Google Maps)
Mack Real Estate may “strip” club owner of properties
Mack Real Estate may “strip” club owner of properties
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
Two Upper East Side apartment buildings head to foreclosure sale
Two Upper East Side apartment buildings head to foreclosure sale
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
arrow_forward_ios

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

Loading...