HONG KONG – Debt-stressed Chinese mainland conglomerate HNA Group has agreed to sell two residential sites in Kai Tak to blue-chip Hong Kong developer Henderson Land Development for nearly HK$16 billion (US$2.04 billion).
HNA subsidiaries had won tenders for residential land at the former airport in Kai Tak for about HK$14.2 billion in late 2016
HNA’s subsidiary – Hong Kong-listed property unit Hong Kong International Construction Investment Management Group (HKICIM) – said in a stock exchange statement on Tuesday morning that the deal was signed on Monday and will be completed on Wednesday.
Two Cayman Island funds holding the rights to the sites would perform the sale, HKICIM said.
The aviation to financial services conglomerate’s subsidiaries had won tenders for residential land at the former airport in Kai Tak for about HK$14.2 billion in late 2016, above market prices at the time.
The sale comes as HNA Group faces financing strains following a US$50 billion acquisition spree in the past two years which has sparked concerns over its opaque shareholding structure and use of leverage.
The conglomerate is seeking to sell properties worth more than US$6 billion worldwide as pressure intensifies to repay debt by speeding up disposals, Bloomberg reports.
Late last month HNA Group sold a building in Sydney, Australia to raise around US$166 million.