HNA Group pays HK$8.84b for former Hong Kong airport site
[HONG KONG] A unit of HNA Group Co outbid Hong Kong developers including Cheung Kong Property Holdings Ltd with a HK$8.84 billion (S$1.58 billion) offer for government land in the former Kai Tak airport area, the highest price tag in three-and-a-half years.
It was the most hotly contested land tender this year, as a rebound in home prices is underway, attracting 20 bidders including Hong Kong's Henderson Land Development Company Ltd and Wheelock Properties Ltd, and mainland buyers such as China Overseas Land & Investment and China Vanke Co, according to a Lands Department announcement on Wednesday.
The Kai Tak purchase works out to about HK$13,490 per square foot, according to Bloomberg calculations based on government data.
It's the latest overseas foray for HNA, which has been on a US$34 billion dealmaking spree over the past year.
The company, led by aviation tycoon Chen Feng, operates airlines, hotels and tourism businesses. Additionally, it is pursuing an aggressive expansion to capitalise on the surge in Chinese outbound traffic, which is expected to reach 200 million annually by 2020.
Last month Blackstone said it was selling about one-quarter of Hilton Worldwide Holdings Inc to HNA for about US$6.5 billion.
In April, HNA agreed to buy Minneapolis-based Carlson Hotels Inc and its majority stake in Rezidor Hotel Group AB, owner of the Radisson brand.
Hong Kong's residential prices have rebounded from a six-month slump amid demand from local as well as mainland Chinese buyers. Residential prices are just 2 per cent below their all-time high reached in September last year.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Private home prices ease to 1.4% rise in Q1; rents fall a further 1.9%
Singapore office rents in central region fall 1.7 per cent in Q1 after rising for 9 quarters
Singapore retail rents slip 0.4% in Q1 as vacancy rates creep up
Country Garden plans to present debt revamp plan in H2, sources say
Hong Kong home prices rise for first time in 11 months after curbs scrapped
HDB resale prices accelerate, rising 1.8% in Q1 on stronger demand