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HNA to sell US building to Samsung for US$320m

Hong Kong

HNA Group sold a Minneapolis office tower to a unit of South Korea's Samsung Group for US$320 million, according to a person familiar with the matter.

The building at 33 South Sixth Street, which counts Target Corp as its biggest tenant, was sold to Samsung SRA Asset Management for about US$5 million more than what HNA paid for less than two years ago, the person said, asking not to be identified discussing a private matter.

Representatives for HNA and Samsung SRA declined to comment.

The sale, along with Tuesday's agreement to offload its stake in Spain's NH Hotel Group SA for 619 million euros (S$975 million), brings the total amount of disposals for the Chinese conglomerate this year to more than US$14.5 billion, as it seeks to reduce debts.

After spending tens of billions of dollars on a multi-year acquisition spree, HNA's debts bloated to about US$94 billion last year and borrowing costs surged to levels topping those of any other non-financial company in Asia, according to data compiled by Bloomberg.

Most of the disposed assets, including shares in Hilton Worldwide Holdings, were sold at a profit.

Real Estate Alert reported late last month that HNA had agreed to sell the Minneapolis office tower.

Separately, HNA is nearing an agreement to refinance the debt on a New York office tower at 850 Third Avenue, people familiar with the matter said. The company is reportedly planning to sell the building. BLOOMBERG

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