HNA is close to selling Manhattan office space for $1 billion for Singapore logistics company CWT
According to media reports, HNA's asset transactions abroad remain active.
Sina Finance quoted The Real Deal, a US professional real estate media, as saying the sale of a 50-year-old office building in Manhattan by HNA subsidiaries and their partners was nearing completion, with potential buyers trading for Nightingale Properties, for about $320 million.
HNA Real Estate plans to sell its stake in the 1180 American Avenue building, which it bought in 2011, the report quoted HNA's subsidiary as saying. The building, which covers an area of nearly 400000 square feet, is located in the heart of the city on sixth Avenue in Manhattan.
The disposal of assets is rare, the article said, as one of the biggest acquisitions in China. Last year, HNA completed about $30 billion in acquisitions, well over $161 million in asset sales. While China curbs capital outflows, the disposal of assets could help HNA accumulate foreign funds.
At the same time, HNA has also carried out an asset acquisition deal overseas to deepen the layout of the global logistics industry chain.
HNA 00521-HK announced last night that it was indeed interested in making a formal full offer for CWT Limited, the Singapore logistics group. As early as April 9, HNA announced plans to buy Singapore CWT for S $2.33 a share. The offer represents a 2.2 per cent premium to the target company's closing price on Wednesday and is worth about S $1.4 billion (US $1 billion). The total price of the transaction is equivalent to the latest market value of CWT (S $1.387 billion).
The company said that after the completion of the acquisition, it will make the business structure of the company clearer, greatly improve the operating conditions of the company, and is expected to provide long-term and sound revenue. At the same time, it will help to promote the integration of trade and finance in countries along the "Belt and Road Initiative" line, especially in Southeast Asia, bring positive synergies and promote intraregional economic development.
Logistics is one of HNA's three main businesses, while the remaining two are tourism and finance.
CWT's revenue in the first half of this year was S $5.192 billion (HK $30 billion), up 22 per cent from a year earlier, and its net profit was S $80.16 million (HK $463 million), an increase of 1.15 times. Revenue in 2016 was S $9.25 billion (HK $50.89 billion) and pre-tax profit was S $130 million (HK $710 million).
Referring to HNA's asset structure, Caixin quoted Wang Shuang, HNA's chief investment officer and HNA's chief executive, as saying at a public event that 40 per cent of its assets, 60 per cent of its income and 75 per cent of its employees were from overseas. The government issued overseas investment rules for Chinese companies that set the direction for HNA, and HNA will try to make the government and customers happy.
Wang Shuang also said that the group has slowed down the pace of overseas acquisitions, but will still make acquisitions in the future because of synergies. If there are any changes in the ownership structure, the Group will disclose them on a regular basis.