Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

HNA Said to Have Sold Shanghai Office Project to China Cinda

2020/01/13 by Michael Cole Leave a Comment

hna tower shanghai

HNA had paid a record price to acquire the Pudong site in 2009

China’s HNA Group has disposed of another of its property assets, according to mainland news reports, with one of the country’s top bad asset banks said to have taken over a Shanghai office building developed by the financially troubled conglomerate.

The parent company of China’s Hainan Airlines has sold the Shanghai HNA Tower, a 26-storey commercial building near Pudong’s Lujiazui area, to China Cinda Asset Management, according to a report earlier this month by government news website ThePaper.cn.

Yardi Investment Manager

The five year old office tower at 898 Puming Road in Shanghai had been among a set of nine mainland properties that HNA had made available for sale in 2018 in a liquidation process that has stretched on while creditors seize real estate and airplanes belonging to the cash-strapped group as it struggles to service its debts.

Eight Office Floors Sold Off

Neither HNA Group nor China Cinda has yet to make a statement regarding the sale of the Shanghai HNA Tower, an 87,395 square metre (940,711 square foot) building along the banks of the Huangpu River near the site of the city’s 2010 expo.

chen feng HNA

HNA chairman Chen Feng has been holding China’s longest panic sale

Financial details of the reported sale have not yet been revealed, however, the sale is said to involve all of HNA’s remaining holdings in the building. The assets said to have been traded include 5,895 square metres of retail space, representing the entire podium of the building, as well as floors 12-20 of the office portion of the project, adding another 34,500 square metres to the transaction.

HNA had previously sold off the lower office floors of the building on a strata-title basis.

Pudong Building Currently 70% Occupied

At present, the office project is estimated to be 70 percent occupied, with asking rentals at around RMB 10 per square metre per month, according to online property listings. and to have produced annual revenue of approximately RMB 140 million during 2018.

Proptech Registration Column

Occupiers in the building include a number of Korean companies, with Samsung and Hyundai Heavy Industries among the better known corporates which make up the tower’s 55 tenants.

HNA had originally purchased the project’s 20,800 square metre site in September 2009 for RMB 1.82 billion ($263 million) – a nearly 66 percent premium over the property auction reserve and a rate which set the record for price per square metre of land that year. At the time, HNA indicated that the property would serve as its future headquarters in the city.

HNA Asset Sales Drag On

The sale of the Shanghai HNA Tower to China Cinda comes around six months after HNA Group had sold off a Beijing office asset, and comes as the group continues to struggle to pay its creditors.

Proptech Registration Column

In July last year HNA sold a 75 percent stake in Beijing HNA Plaza to developer China Vanke for RMB 1.3 billion. Shenzhen-based Vanke had first agreed to buy around a 25 percent stake in the two building complex in June of last year.

One year ago, HNA had sold another Pudong office asset, a set of floors representing 70 percent of the space in the Pufa Tower in Lujiazui, to a joint venture between CapitaLand and AEW for RMB 2.75 billion.

In November, HNA’s CWT International subsidiary went on to sell a set of golf courses in the US for $86.5 million, after creditors of the Hong Kong-listed company had seized some of its assets in an effort to collect on debts owed by the company.

Despite that asset sale, in December Hong Kong’s airport authority seized seven planes belonging to HNA’s Hong Kong Airlines affiliate, after the carrier failed to pay airport fees for the aircraft.

While HNA Group boosted its balance sheet to a level that prevented Hong Kong’s air transport authority from revoking its license in December, news reports this month indicate that the airline is likely to cut staff by as much as one-third after reducing its fleet of planes from 39 to 28.

Related Stories

  • HNA Group Sells Shanghai Office Tower to China Cinda for RMB 3.6BHNA Group Sells Shanghai Office Tower to China Cinda for RMB 3.6B
  • CapitaLand and AEW Buy 70% of Shanghai Office Tower From HNA for RMB 2.75BCapitaLand and AEW Buy 70% of Shanghai Office Tower From HNA for RMB 2.75B
  • Slice of Shanghai’s Tomorrow Square Now Available on Taobao for $378MSlice of Shanghai’s Tomorrow Square Now Available on Taobao for $378M
  • Sino-Ocean Capital Acquires Office Asset in Shanghai’s Caohejing for RMB 2BSino-Ocean Capital Acquires Office Asset in Shanghai’s Caohejing for RMB 2B

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: cm-ml, HNA Group, Shanghai, weekly-sp

Proptech Registration Jumbo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Facility Manager

Get Mingtiandi Delivered

Proptech Registration Column

Latest Stories

John Pattar KKR

KKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate Fund

Mango Halts China Store Openings and More Asia Real Estate Headlines

Blackstone Buying Disney Building in Singapore’s One North for $135M

George Agethen

Ivanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JV

Sponsored Features

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

Urban planning

Urban Placemaking with Big Data and Little People Sponsored Feature

Hines’ One Museum Place Celebrates One Year of a New Shanghai Landmark Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

CapitaLand China Retail REIT Sells Wuhan Properties and More Asia Real…CapitaLand China Retail REIT Sells Wuhan Properties and More Asia Real Estate Headlines

Blackstone Buying Disney Building in Singapore’s One North for $135MBlackstone Buying Disney Building in Singapore's One North for $135M

JLL Names New Country Heads for Singapore, ThailandJLL Names New Country Heads for Singapore, Thailand

Ivanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JVIvanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JV


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse