Debt-saddled HNA Group is giving up its pricey offices in Hong Kong

Debt-laden Chinese conglomerate never moved into space

National /
Sep.September 12, 2018 12:00 PM

HNA Chairman Chen Feng and Three Exchange Square in Hong Kong (Credit: Wikipedia)

HNA Group is giving up more than 80,000 square feet of office space it leased in Hong Kong but never moved into.

The debt-saddled Chinese conglomerate signed a nine-year lease at Three Exchange Square that started in June, Bloomberg News reported. But HNA Group never built out the space or moved in, and some of the floors are now being marketed to new tenants, people familiar with the matter told Bloomberg.

HNA was said to pay more than $1.5 million a month in rent for the eight floors spanning 88,000 square feet in the building owned by Hongkong Land Holdings Ltd.

Hong Kong’s Central district is the most expensive office market in the world, and Colliers International’s David Wood said the space should go relatively quickly.

“There are still a number of mainland firms looking to consolidate operations,” he said. “A lot of tenants in Hongkong Land’s portfolio looking for expansion space have struggled to find it because the vacancy rate is so tight.”

HNA has sold more than $17 billion of assets this year as it looks to steady its balance sheet. [Bloomberg] – Rich Bockman


Related Articles

arrow_forward_ios
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
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
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
CRE held up through the pandemic far better than most expected (iStock)
How commercial real estate survived the pandemic
How commercial real estate survived the pandemic
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
arrow_forward_ios

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

Loading...