HNA Group Co., the cash-strapped Chinese conglomerate, agreed to sell two land plots at Hong Kong’s former Kai Tak airport for HK$16 billion ($2 billion), as it seeks to cut its massive debt.
The sites, purchased just over a year ago, were sold to Hong Kong developer Henderson Land Development Co., according to a statement Tuesday. HNA had spent about HK$14.2 billion on the two sites, according to records from Hong Kong’s land registry.
The sales are the latest sign of the troubles facing HNA. The company, which started as an airline operator, became a symbol of China’s huge appetite for overseas properties, spending tens of billions of dollars to buy trophy buildings and stakes in Hilton Worldwide Holdings Inc. and Deutsche Bank AG. It is also seeking to sell a raft of buildings valued at $4 billion across the U.S.
HNA bought four sites at the former Kai Tak airport for a total HK$27.2 billion between November 2016 and March last year, outbidding local developers for sites that were among the most hotly contested during that period. The sale to Henderson is expected to close Feb. 14.
