Freeing up liquidity: HNA sells Hong Kong site to Wheelock for $811 mln (updated)

Tysan Holdings

09/03/2018 03:02

* HNA sells a Kai Tak site, one more remaining
    * HNA sold two HK sites last month
    * Wheelock purchase adds to expanding portfolio in HK

 (Recasts, adds other details)
    By Donny Kwok and Clare Jim
    HONG KONG, March 9 (Reuters) - China's HNA Group  HNAIRC.UL 
is selling a land parcel in Hong Kong to local developer
Wheelock and Co Ltd  0020.HK  for $811.1 million, the latest in
a string of global asset disposals to ease its liquidity crunch.
   
    The aviation-to-financial services conglomerate is racing to
raise cash following a $50 billion acquisition spree over the
past two years, which has sparked scrutiny of its opaque
ownership and use of leverage.
    Last week, HNA said to be planning the sale of some or all
of its 25 percent stake in Park Hotels & Resorts PK.N, according
to the U.S. hotel chain, potentially reaping up to $1.4 billion.
 urn:newsml:reuters.com:*:nL4N1QK25F
    On Friday, Wheelock said in a filing it would buy a
residential site from a HNA Group unit for HK$6.36 billion
($811.1 million), as the developer expands its development
property portfolio in Hong Kong's Kai Tak area.
    It will buy a 7,318 square metre (78,770 square foot)
residential site from Omnilink Assets Ltd, a unit of the
HNA-controlled Hong Kong International Construction Investment
Management Group Co Ltd  0687.HK  (HKICIM), the Hong Kong
developer said.
    HKICIM bought the site for HK$5.53 billion last year, and
three other land parcels in the same area located near a stretch
of land northeast of the iconic Victoria harbour that used to be
the old Kai Tak Airport's runway.
    The HNA unit has already sold two of the four land parcels
last month to Henderson Land Development Co  0012.HK  for HK$16
billion.  urn:newsml:reuters.com:*:nL4N1Q306U
    HNA, one of the most acquisitive conglomerates, is not the
only firm that faces liquidity pressure as Beijing has stepped
up a broad crackdown on risky financing. Dalian Wanda Group,
facing similar pressures, sold its property developments in the
U.K. and Australia earlier this year. It also disposed a 17
percent stake in Atletico Madrid.
 urn:newsml:reuters.com:*:nL3N1PC1LU urn:newsml:reuters.com:*:nL4N1PO3UT urn:newsml:reuters.com:*:nL8N1Q42CV
    In February, the Chinese government announced it was taking
control of Anbang Insurance Group  ANBANG.UL , saying it
violated laws and regulations.  urn:newsml:reuters.com:*:nL4N1QD1C7
    On Friday, trading in shares of HKICIM were suspended, while
those of Wheelock climbed as much as 2.9 percent in early trade.
    Wheelock said the deal will be funded by the group's
internal resources and bank borrowings. 
       
    
($1 = 7.8412 Hong Kong dollars)

 (Reporting by Donny Kwok and Clare Jim
Editing by Stephen Coates & Shri Navaratnam)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))