HNA subsidiary sells Sydney office block for US$165 million
HNA subsidiary highlights sale of ‘mature investments at opportune time’, unloading Sydney office block it acquired in January 2012
A HNA Group subsidiary has sold a Sydney office block for A$205 million (US$165 million), as the embattled Chinese conglomerate continues its asset disposals in a bid to raise cash.
Hong Kong International Investment group, a member of the HNA Group, announced the sale of the Sydney One York Office Building late Friday without disclosing the buyer.
Bloomberg and Reuters reported that the buyer was the Blackstone Group, each citing people with knowledge of the matter.
In a statement, Hong Kong International Investment said that it had acquired the building, located alongside Sydney Harbour, on January 2012 for A$117 million.
The HNA statement said that the sale “agreed with the company’s buy and sell investment principle, that is, to realise some of its mature investments at opportune time, thereby unlock the value of the company’s assets”.
However, this is not the only asset from which HNA is seeking to raise capital.
Earlier this week the conglomerate said it was hoping to list its airport cargo handler subsidiary Swissport on the SIX Swiss Exchange in Zurich this year. There has also been media speculation about additional sales of assets in London and Hong Kong.
HNA Group chairman Chen Feng said in an interview with Reuters last week that the company was facing liquidity problems because it had “made a big number of mergers”.
In addition, trading in the stocks of 10 of HNA’s listed units has been suspended amid investor concerns about the company’s financial position.
HNA had pursued an aggressive programme of overseas investments ranging from a stake in Germany’s largest lender Deutsche Bank, to plots of land for residential development nearby Hong Kong’s former international airport, Kai Tak.
HNA is not the only Chinese conglomerate looking to offload Australian properties. On Tuesday, Wanda said that it had sold two property developments in Australia, without specifying which ones.