June 24, 2018 / 11:06 PM / 10 months ago

China's HNA to sell stake in 245 Park Avenue to SL Green: WSJ

FILE PHOTO: A HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo

NEW YORK (Reuters) - SL Green Realty Corp. (SLG.N) is buying a stake in the office tower at 245 Park Avenue in New York City from embattled Chinese conglomerate HNA Group [HNAIRC.UL], according to the Wall Street Journal.

HNA has been seeking to sell assets after overstretching itself through a debt-fueled buying spree in 2016 and 2017 that included purchasing 245 Park Avenue for $2.21 billion 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”.

Spokespeople for SL Green and HNA Group did not immediately respond to requests for comment from Reuters.

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 $10 billion in Australia, New York and Hong Kong, along with shares in Deutsche Bank AG (DBKGn.DE) and Hilton Worldwide Holdings Inc (HLT.N).

Reporting by David French; Editing by Daniel Wallis

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