(Yicai Global) Jan. 7 – Embattled Chinese conglomerate HNA Group has sold a 70  percent stake in a Shanghai office block for CNY2.8 billion (USD410 million) to a 50:50 joint venture between real estate firm CapitaLand and an undisclosed party.

The Pufa Tower transaction marks the Singapore-based firm's first office space deal in Shanghai's Lujiazui financial district, CapitaLand President for China and Investment Management Lucas Loh said in a statement. The company also recently inked an agreement for its third Raffles City development in the eastern Chinese city.

Haikou-based HNA Group has been disposing of assets worldwide since the end of 2017 after years of excessive investment, especially overseas, led to a liquidity crisis. Chen Feng, the company's chairman, admitted that HNA's cash crunch emerged after it failed to adapt to changes appropriately, he said at a forum marking the 40th anniversary of China's reform and opening-up last month.

CapitaLand's JV will own 24 floors of the 34-story tower, which was completed in 2012. The skyscraper's ground floor lobby and refuge floor on level 20 are co-owned with Shanghai Pudong Development Bank, which owns the rest of the building.

Editor: William Clegg