China’s HNA to sell stake in 245 Park Avenue to SL Green

HNA had previously purchased an office tower at Park Avenue for US$2.21 billion. (Reuters pic)

NEW YORK: SL Green Realty Corp is buying a stake in the office tower at 245 Park Avenue in New York City from embattled Chinese conglomerate HNA Group, according to the Wall Street Journal.

HNA has been seeking to sell assets after overstretching itself through a debt-fuelled buying spree in 2016 and 2017 that included purchasing 245 Park Avenue for US$2.21 billion (RM8.87 billkion) last year, at a price described at the time as one of the highest ever paid for a commercial skyscraper in Manhattan.

The WSJ report published late on Saturday did not give details of the deal, but cited one source familiar with the matter as saying SL Green would have “operating control of the property and a preferred position in the joint venture”.

HNA is restructuring its operations and selling assets to raise cash, partly to repay debt.

Since the start of 2018, it has agreed to sell real estate worth more than US$10 billion (RM40 billion) in Australia, New York, and Hong Kong, along with shares in Deutsche Bank AG and Hilton Worldwide Holdings Inc.