Feb 01, 2019 (China Knowledge) - Debt-ridden Chinese conglomerate HNA Group will sell its last plot of development land at Hong Kong’s former Kai Tak airport site to Hong Kong developer Wheelock & Co. to help it with its debt repayment.
HNA which bought the land back in March 2017 for HKD 7.44 billion likely sold it to Wheelock at a loss following the slowdown in the residential property market in Hong Kong. In addition, the company will also have incurred costs such as interest payments over the time it held the land.
The area which has been widely speculated to be developed into a new central business district for Hong Kong has drawn interest from other companies. In February last year, HNA sold its first 2 plots of land in the area to Henderson Land Development for HKD 15.9 billion to make a profit of HKD 1.7 billion.
Following this sale, HNA also sold its third plot of land in the area to Wheelock for HKD 6.36 billion in March. The three sales totaled HKD 22.26 billion and helped HNA to net HKD 2.5 billion in profits.
Overall, HNA is likely to have made a sizable profit from these land sales and will help it to better cope with its debts. The sale is the latest in a series of property sales by HNA which saw it sell an office building in Shanghai and another building in Manhattan.
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