February 1, 2019 / 1:55 PM / 6 months ago

HNA's Hong Kong unit sells land parcel to Wheelock for about $500 mln

HONG KONG, Feb 1 (Reuters) - China’s HNA Group sold its last land parcel in Hong Kong to local developer Wheelock and Co’s property business for HK$3.91 billion ($498.3 million), continuing its global asset disposals to ease its liquidity crunch.

Hong Kong International Construction Investment Management Group, a unit of aviation-to-financial services conglomerate HNA, sold to Wheelock Properties land in the Kai Tak area that was bought about two years ago.

“The transaction provides an opportunity for the group to realise its investment and redeploy its resources in a more prudent matter,” Hong Kong International said in a filing to the Hong Kong stock exchange on Friday.

Wheelock bought a residential site from the HNA unit last March for HK$6.36 billion, expanding its portfolio near a stretch of land northeast of the Victoria harbour, which used to be the old Kai Tak Airport’s runway.

Four other land parcels were sold to Henderson Land Development for HK$16 billion last February.

Faced with soaring debts and China’s crackdown on aggressive dealmaking firms, HNA has been pushing ahead with a series of asset sales that have included real estate and stakes in hotel groups.

Trading in Hong Kong International’s shares was halted on Friday and will resume on Monday. Wheelock’s shares closed 0.8 percent higher on Friday. ($1 = 7.8470 Hong Kong dollars) (Reporting by Clare Jim and Meg Shen Editing by Lee Chyen Yee and David Goodman)

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