With sale of Minneapolis tower, disposals at Chinese giant HNA this year cross US$14.5 billion
Office tower sold for US$320 million to Samsung Group subsidiary
Chinese conglomerate HNA Group has sold an office tower in Minneapolis, Minnesota to a unit of South Korea’s Samsung Group for US$320 million, according to a person familiar with the matter.
The sale, along with Tuesday’s agreement to offload its stake in Spain’s NH Hotel Group for €619 million (US$726 million), brings the total amount of disposals at the Chinese conglomerate this year to more than US$14.5 billion, as it seeks to reduce debts.
The building at 33 South Sixth Street, which counts Target as its biggest tenant, was sold to Samsung SRA Asset Management for about US$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.
The representatives for HNA and Samsung SRA declined to comment.
After spending tens of billions of dollars during a multi-year acquisition spree, HNA’s debts bloated to about US$94 billion last year and borrowing costs surged to levels topping those of any other non-financial company in Asia, according to data compiled by Bloomberg.
Most of the disposed assets, including shares in Hilton Worldwide Holdings, were sold at a profit. Real Estate Alert reported last month that HNA had agreed to sell the Minneapolis office tower.