HNA mulls selling London properties?
HONG KONG: HNA Group has approached brokers about the possible sale of two office buildings in London’s Canary Wharf financial district as it seeks to shed assets and cut its debt burden, said two people with knowledge of the discussions.
The Chinese conglomerate has sought advice from brokers on the value of 30 South Colonnade and 17 Columbus Courtyard with a view to selling them, said two of the people, asking not to be identified because the plan is private. It has also approached investors that may be interested in purchasing the properties, which cost HNA about £366 million (RM1.98 billion) in total, said a separate person.
The company, which started as a regional airline, is planning to sell about US$5 billion (RM19.98 billion) of assets by April, reported Bloomberg News on Friday.
Chief executive officer Adam Tan said in November that the group was looking to sell assets to conform with Chinese government policies. HNA plans to sell buildings in New York and Sydney, while the company wants to cash out of properties here through real-estate investment trusts, he said.
HNA went on a debt-fuelled buying spree in recent years, spending billions of dollars on assets including trophy properties and stakes in Deutsche Bank AG and Hilton Worldwide Holdings Inc. The purchases strained its finances and drove up borrowing costs. To assuage concerns about its finances, HNA has taken various measures such as touting credit support and announcing stock purchases to bolster confidence.
HNA purchased 30 South Colonnade in 2015 for about £235 million, the people said.
The conglomerate paid £131 million to acquire 17 Columbus Courtyard the following year, according to a statement released by the company. Bloomberg