HNA sells US building to Samsung for $320m

The building in Minneapolis counts Target Corp as its biggest tenant

HNA Group Co. sold a Minneapolis office tower to a unit of South Korea’s Samsung Group for $320 million, according to a person familiar with the matter.

The building at 33 South Sixth Street, which counts Target Corp as its biggest tenant, was sold to Samsung SRA Asset Management for about $5 million more than what HNA paid for less than two years ago, the person said, asking not to be identified discussing a private matter.

Representatives for HNA and Samsung SRA declined to comment.

The sale, along with Tuesday’s agreement to offload its stake in Spain’s NH Hotel Group SA for €619 million ($726 million), brings the total amount of disposals for the Chinese conglomerate this year to more than $14.5 billion, as it seeks to reduce debts. After spending tens of billions of dollars on a multiyear acquisition spree, HNA’s debts bloated to about $94 billion last year and borrowing costs surged to levels topping those of any other nonfinancial company in Asia, according to data.

Most of the disposed assets, including shares in Hilton Worldwide Holdings Inc, were sold at a profit. Real Estate Alert reported late last month that HNA had agreed to sell the Minneapolis office tower.

Separately, HNA is nearing an agreement to refinance the debt on a New York office tower at 850 Third Avenue, people familiar with the matter said. Bloomberg has previously reported that the company is planning to sell the building.

The sale brings the total amount of disposals for the Chinese conglomerate this year to more than $14.5 billion.