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
    • Mingtiandi 2023 Event Calendar
    • Mingtiandi APAC Residential Forum 2023
    • Mingtiandi Asia Logistics Forum 2023
    • Mingtiandi Hong Kong Focus Forum 2023
    • Mingtiandi APAC Data Centre Forum 2023
    • Mingtiandi Asia Office Strategies Forum 2023
    • Mingtiandi Singapore Focus Forum 2023
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

HNA Group Sets 2nd Hong Kong Land Record in 2 Months with HK$5.4B Kai Tak Deal

2016/12/20 by Michael Cole Leave a Comment

Kai Tak Terminal

Converting the Kai Tak airport site has transformed the Kowloon East area into a hotspot

China’s HNA Group continued its acquisition spree this week by returning to Hong Kong’s land market for a second record-setting site purchase in as many months.

The parent company of China’s Hainan Airlines agreed on Monday to pay HK$5.4 billion ($697 million) to acquire an 8,803 square metre residential site in Hong Kong’s Kai Tak area, that would yield a maximum 36,972 square metres of new homes, according to a statement from the city Lands Department.

HNA’s bid worked out to HK$13,600 per square foot, and surpassed bids by 20 other developers for the parcel in Kowloon East. The price paid also surpassed the Kai Tak record HK$13,500 per square foot that HNA had agreed to pay in November, when it acquired an adjacent plot.

HNA Beats Out Top Mainland and Hong Kong Developers

Chen Feng HNA

HNA chairman Chen Feng has been making some magical bids for Hong Kong sites

To win its latest land prize, HNA had to outbid a roster of competing bidders that includes many of the largest developers from Hong Kong and mainland China. From Hong Kong, heavy hitters Cheung Kong Property, Sun Hung Kai, New World Development and Wheelock all put in bids less generous than their mainland competitor.

And some of China’s most experienced developers found less to love in Kai Tak than HNA did, with China Vanke, China Resources Land, China Overseas Land & Investment and Shimao Property all submitting lesser offers.

The Kai Tak area, which formerly was home to Hong Kong’s international airport, has benefited recently from government efforts to promote the district as a second downtown. The local development authority has built a cruise terminal alongside one of the former airport runways, and promoted the conversion of many of the former industrial buildings in the area into high grade office space.

Still, HNA’s offer for the site, Kai Tak Area 1L Site 3, exceeded market expectations by 24 to 38 percent, according to an account in the South China Morning Post.

Aggressive Bidding Part of HNA’s DNA

The land parcel expenditure is dwarfed, however, by some of HNA’s other acquisitions this year, which have ranged from high tech suppliers to hotel operators.

Earlier this month the company controlled by “Buddhist billionaire” Chen Feng closed on the $6 billion acquisition of electronics distributor Ingram Micro. Also during December, the conglomerate closed on its purchase of US-based hospitality operator Carlson Hotels, giving it majority control over Rezidor Hotel Group.

The Carlson deal was one of a number of hospitality related purchases for HNA this year, including its October agreement with Blackstone to pay the US private equity firm $6.5 billion for an approximately 25 percent stake in Hilton Hotel Group. Also this year, HNA bought Blackstone’s 66 percent stake in Hong Kong-listed developer Tysan for $337 million.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Projects Tagged With: daily-sp, Featured, highlight, HNA Group, Kai Tak, Kowloon East, site acquisition

Leave a Reply

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

Get Mingtiandi Delivered

MTD TV

MTD TV Greater China REIT
SF REIT, C&W and Baker Mac See Greater China REIT Sector on the Rise: MTD TV
MTD TV Interview with Jeffrey Perlman of Warburg Pincus Now Online

More MTD TV Videos>>

People in the News

Johnny Shao CPE
Asia Real Estate People in the News 2023-03-27
Jonathan Yap CapitaLand
Jonathan Yap Named CapitaLand Development CEO as Leow Retires Early
Grace Woo Chia-ching, executive director of CK Asset (Getty Images)
Asia Real Estate People in the News 2023-03-20
Eugene Kohn KPF
Asia Real Estate People in the News 2023-03-13

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2023-03-27

Johnny Shao CPE

Top level moves at European and Asian fund managers lead this week’s list of personnel changes from around Asia Pacific … Read More>>

Jonathan Yap Named CapitaLand Development CEO as Leow Retires Early

Jonathan Yap CapitaLand

Singapore property giant CapitaLand on Thursday announced the upcoming retirement of CapitaLand Development CEO Jason … Read More>>

Asia Real Estate People in the News 2023-03-20

Grace Woo Chia-ching, executive director of CK Asset (Getty Images)

Senior changes at developers in Hong Kong and mainland China lead this week’s review of personnel changes in Asia, with … Read More>>

Asia Real Estate People in the News 2023-03-13

Eugene Kohn KPF

The passing of a global architecture giant leads this week’s round of personnel updates on Mingtiandi, as KPF mourns the … Read More>>

More Industry Professionals>>

Latest Stories

Darren Searle Logos
Logos Seeks Buyer for Stake in $2B Australian Industrial Portfolio
CSRC Chairman Yi Huiman
China Expands REIT Regime to Include Malls and Department Stores
Keppel Corporation chairman Danny Teoh
Keppel JV Selling Stake in Manila Complex to Sy Family’s BDO for $150M

Sponsored Features

TE Capital's Solitaire on Cecil
Pair of Floors Sold as TE Capital, LaSalle Launch Cecil Street Office Tower in Singapore
What Do Real Estate Investors Really Want?
Douglas Wu of Fairland
Fairland Creates Spark City Lifestyle Hub to Energise Hong Kong’s Cheung Sha Wan

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

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


© 2007-2023 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.