Partner mulls ways to reduce ties with HNA
SINGAPORE: HNA Group Co’s partner in an overseas property trust is exploring ways to potentially scale back its ties to the embattled Chinese conglomerate, said people with knowledge of the matter.
AEP Investment Management Pte is weighing options for reducing HNA Group’s involvement in the planned Singapore initial public offering of HNA Commercial REIT, which was going to be backed by S$1 billion (RM3.14 billion) of properties from the two partners.
All possibilities are under consideration, including lowering the stake HNA Group would take in the trust and the company that manages it, said the people.
AEP has begun reaching out to other potential partners to gauge their interest in taking a role backing the property trust, said the people.
The Singapore-based company, which started preparations for the listing last year before bringing in HNA Group, is also considering whether to reduce the trust’s reliance on real estate from the Chinese firm, said the people.