China’s troubled HNA Group flips Kai Tak plots to Henderson Land for a profit of HK$1.7 billion
HNA Group, which paid HK$14.3 billion for the two plots at the site of Hong Kong’s former airport in Kai Tak, has sold it to Henderson Land for HK$16 billion
The two plots at the site of Hong Kong’s former airport in Kai Tak have a total gross floor area of 1.06 million square feet and were sold to Henderson Land Development for HK$16 billion, or HK$15,000 per square foot, a record in terms of per square foot for the area.
HNA’s Hong Kong-listed property unit, Hong Kong International Construction Investment Management Group (HKICIM), said the deal was signed on Monday and will be completed on Wednesday, according to a filing to the Hong Kong stock exchange.
In November 2016, Lands Department awarded the site, New Kowloon Inland Lot No 6565, to HNA’s wholly owned subsidiary Total Thrive for HK$8.84 billion. A month later, the group’s Sky Hero Development secured the adjacent site, New Kowloon Inland Lot No 6562, for HK$5.41 billion.
Henderson Land, chaired by property tycoon Lee Shau-kee, paid HK$15.959 billion for the entire shares of Total Thrive and Sky Hero, according to HKICIM’s statement.