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Debt-laden HNA Group sells prime waterfront office tower in Shanghai for US$509 million
- China Cinda Asset Management will own more than half of the 85,000 square metre grade A building in Pudong’s Lujiazui area
- In January 2019, the indebted Chinese conglomerate had sold a 70 per cent stake in another Shanghai tower to Singapore’s CapitaLand
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The aviation-to-finance conglomerate HNA Group has completed the sale of a 20-storey office tower in Shanghai to a state-backed bad debt manager for 3.6 billion yuan (US$509 million) as it sheds assets to trim its multibillion-dollar debt load.
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China Cinda Asset Management, one of the country’s four state-owned bad debt companies, will own most of the Shanghai HNA Tower, in Pudong’s Lujiazui area after it was reported that it had sold its lower floors earlier, Colliers International said.
The sale comes after the Hainan provincial government, China’s civil aviation administrator and policy lender China Development Bank formed a special task force in late February to help HNA Group manage its liquidity.
Cinda will own floors one to five and floors 12 to 20 or 47,500 square metres of the 85,000 sq metre grade A building whose sale was first reported in January.
In January 2019, HNA sold a 70 per cent stake it held in another Shanghai office building to Singapore property giant CapitaLand for 2.75 billion yuan.
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In 2009, HNA had paid a then record 1.82 billion yuan or 36,481 yuan per square metre for land along Huangpu River to construct the prime waterfront building designed by GMP Architects.
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