HNA Group may shed its assets as pressure mounts from the Chinese government to limit the amount of capital flowing out of the country.
The announcement comes after HNA pumped some $45 billion into global investments over the last three years. Adam Tan, CEO of HNA Group, told reporters on Tuesday that he was considering selling buildings and holdings in industries restricted by the Chinese government, Bloomberg reported.
“If some sectors are now restricted by government, I will consider selling assets I bought in these sectors,” Tan said. “We will not invest in anything the government does not support.”
Asset sales would help HNA pay off more than $100 billion in debt. The Real Deal reported in September that HNA was close to selling its stake in 1180 Sixth Avenue to Nightingale Properties for $320 million. In July, HNA halted merger and acquisition deals as Chinese officials investigated five major international investors in the country.
The company’s other New York City holdings include 245 Park Avenue, which it bought for a whopping $2.2 billion in May, and 850 Third Avenue, which it owns with MHP Real Estate Services. [Bloomberg] — Kathryn Brenzel