(Yicai Global) May 2 -- A unit of debt-laden Chinese conglomerate HNA Group Co. plans to sell real-estate assets in Shanghai’s Pudong financial district for CNY2.9 billion (USD456.7 million), generating a profit of CNY400 million.
HNA Investment Group Co. has signed a share transfer agreement with a unit of Fujian-based real estate developer Fusheng Group for the sale of a 100 percent stake in and credits related to its own subsidiary Shanghai Investment Management Co., the firm said in a statement.
The unit holds a 90.9 percent stake in Shanghai Investment Management Co., while HNA Investment Group acts a trustor, holding the remaining stake in the target company firm, the announcement said.
After a few years of overseas buying sprees, HNA Group has been selling off real estate and stakes in companies this year amid cash flow issues and tightening Chinese government scrutiny of offshore deals. The group has sold off six projects this year including assets in Hong Kong and New York, totaling CNY21.5 billion, while also divesting stakes worth CNY9.8 billion in companies such as Hilton Grand Vacations Inc. and Deutsche Bank AG.
The firm has also pulled out of a deal for investment firm SkyBridge Capital, founded by US President Donald Trump’s former aide Anthony Scaramucci, citing failure to obtain regulatory approvals.
The target company owns the land and a project under construction on it in the front beach area of Huangpu River south bank area in, Shanghai's Pudong New Area. HNA Investment Group acquired the land through an auction in September 2013 for CNY1.67 billion. It has an area of about 11,600 square meters, and construction started in January 2014.
The project includes residential and commercial buildings, with expected areas of 61,900 square meters. Two residential buildings and an office building are currently under construction. The secondary structure construction of residential buildings has already been completed, and most secondary construction of office buildings has been finished, the firm said.
Editor: William Clegg