China's HNA Group Considers Sale Of U.S., Australian Assets
China's HNA Group Co. is considering a sale of assets amid increased government scrutiny regulating outbound capital spent on foreign assets.
HNA, the company behind some of the largest real estate deals in the country this year (including the purchase of 245 Park Ave. from Brookfield for $2.2B), plans to dispose of buildings and holdings in New York and Sydney that are in sectors now restricted by the Chinese government.
The sale could also improve HNA's liquidity and cash flow, Bloomberg reports. Finances for the firm have become strained as of late, with HNA taking out a $1.75B loan from a conglomerate of banks headed by JP Morgan to acquire Brookfield's 245 Park Ave.
News of the sell-off comes after months of scrutiny and tightened restrictions by the Chinese government regarding foreign investment. Last year, Chinese investment in the U.S. market totaled $16.4B, but that figure has since dropped substantially after new regulations require officials to scrutinize all foreign transactions, not just those $1B and up.
It is unclear at this time which assets will be sold, but the company has confirmed it will moderate the pace of overseas investment in order to abide by Chinese government policies.
