HNA Said to Sell U.S. Building to Samsung for $320 Million

(Bloomberg) -- HNA Group Co. sold a Minneapolis office tower to a unit of South Korea’s Samsung Group for $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 $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 $94 Billion Mystery: What Will Be Left of HNA’s Vast Empire?

The sale, along with Tuesday’s agreement to offload its stake in Spain’s NH Hotel Group SA for 619 million euros ($726 million), brings the total amount of disposals for the Chinese conglomerate this year to more than $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 $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 Inc., 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. Bloomberg has previously reported that the company is planning to sell the building.

©2018 Bloomberg L.P.

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