By Joanne Chiu
Wheelock & Co. (>> company sheet) has agreed to buy a residential property site in Hong Kong's Kai Tak area from a unit of Chinese conglomerate HNA Group. for 6.36 billion Hong Kong dollars (US$811 million).
The Hong Kong property and logistics conglomerate Wheelock said before the markets opened Friday that it had agreed to buy Onwards Asia Ltd., which holds a development site under construction in Hong Kong's former Kai Tak airport from Omnilink Assets Ltd., which is controlled by HNA's Hong Kong International Construction Investment Management Group Co. (>> company sheet).
HNA's listed unit had paid HK$5.53 billion for the site through government tender in early 2017, outbidding bigger local competitors such as Sun Hung Kai Properties Ltd. and Cheung Kong Property Holdings Ltd.
Wheelock plans to fund the purchase through internal resources and bank borrowings, and said the acquisition offers an opportunity to expand its development property portfolio in the Kai Tak area. It presently owns a residential project Oasis Kai Tak.
The latest sale by HNA comes after its Hong Kong listed unit agreed last month to sell two land parcels in Hong Kong to blue-chip developer Henderson Land Development Co. for HK$15.96 billion. The heavily indebted Chinese conglomerate HNA has been seeking to offload its assets, as some lenders have tightened credit.
-Write to Joanne Chiu at email@example.com