HNA Group

HNA sells property and logistics assets to Chinese tycoon Sun Hongbin for US$305 million

Sun Hongbin, chairman of Sunac China, has previously bought billions of yuan of assets from troubled Chinese tech company LeEco and Dalian Wanda

PUBLISHED : Monday, 12 March, 2018, 8:07pm
UPDATED : Monday, 12 March, 2018, 11:36pm

HNA Infrastructure Investment, a listed unit of HNA Group, said on Monday evening that it would transfer its entire holdings in two companies to a subsidiary of Sunac China, which is controlled by Chinese tycoon Sun Hongbin, for a combined 1.93 billion yuan (US$305 million).

HNA Group has been rushing to sell its assets to pay down debt as Chinese authorities tighten the screws on overseas investment and acquisition sprees by domestic corporate heavyweights. Its peers, such as Dalian Wanda Group, Anbang Insurance Group, and Fosun Group, have also come under scrutiny since last year.

Moody’s downgrades outlook on ratings of HNA-owned Swissport as loan repayment concerns

A unit of HNA Infrastructure Investment plans to sell its 100 per cent stake in Hainan Gaohe Property Development to Hainan Sunac Chang Sheng Estates (HSCSE) for about 1.13 billion yuan, according to a filing to the Shanghai Stock Exchange.

In a separate filing, HNA Infrastructure Investment said the same unit will also sell its 100 per cent stake in Hainan Haidao Construction Logistics to HSCSE for about 797 million yuan.

The final sale amounts are subject to a due diligence, HNA Infrastructure Investment added.

“The deals will help the company to integrate its resources, optimise asset structure, drive strategic transformation, accelerate its basic infrastructure investment and construction business, and boost overall profitability,” HNA Infrastructure Investment said.

HNA Infrastructure Investment has been suspended from trading since January 22.

HNA Group has spent more than US$40 billion in the past three years on a high-profile international acquisition spree. But it is planning huge job cuts and accelerating the sale of overseas assets, as the Chinese authorities crack down on companies’ offshore investments, particularly in real estate, hotels, and movie studios.

HNA to offload its US$1.4 billion stake in Hilton spin-off as it rushes to raise cash and slash debt

The company is in the process of selling its 25 per cent stake in the real-estate business spin-off of Hilton Worldwide Holdings – Park Hotels and Resorts.

Sunac China, one of the country’s largest property developers, has bought billions of yuan of assets in many high-profile acquisitions since last year.

In July, Sunac China agreed to buy hotels, land, cultural and tourism projects from Dalian Wanda for 63.2 billion yuan, the country’s largest property deal.

Sunac’s Sun also invested 15 billion yuan last year to bail out Chinese tech company LeEco, founded by entrepreneur Jia Yueting.