Embattled Chinese conglomerate HNA Group’s Hong Kong property unit to return HK$800 million to shareholders
The gain comes from the sale of property development projects in Hong Kong and mainland China
A subsidiary of embattled Chinese conglomerate HNA Group, Hong Kong International Construction Investment Management Group, said it expected to return at least HK$800 million (US$102 million) to shareholders after selling assets including land at a residential property site in Hong Kong.
In a filing to the Hong Kong exchange, the company said the gain mainly came from selling land at the former Kai Tak airport site in Hong Kong as well as property development projects in Shanghai and Tianjin.
HNA Group, one of China’s biggest global asset buyers since 2012, has been selling assets to repay borrowings, under pressure from regulators and creditors.
The group and its Hong Kong-listed property unit bought four sites at Kai Tak between November 2016 and March last year, but sold three of them to Hong Kong developers Henderson Land and Wheelock & Co this year. Sales of the three plots for a combined HK$21.53 billion earned HNA a net gain of HK$2.54 billion.
HNA in February pledged 40.98 per cent of its stake in Hong Kong International Construction Investment Management as collateral for a loan from Hong Kong private equity firm PAG Holdings Ltd, which owns alternate investment management firm PAG.
HNA Group’s former co-chairman Wang Jian died on Wednesday during a trip to France after falling 15 metres onto rocks. Wang was one of the largest shareholders of the company, holding a 15 per cent stake. He has been replaced by co-founder Chen Feng.