Its $16b sale to Henderson Land was 12% higher than the original land selling price.
Bloomberg reports that Hong Kong’s heated property market may have boosted embattled Chinese conglomerate HNA Group’s bid to stay afloat as it aims to ease its massive debt burden through a rapid asset disposal.
Local developer Henderson Land Development has purchased two land plots from the embattled company for $16b at 12% more than the price HNA had earlier shelled out for the land in 2016.
The deal reflects gains in property prices and forecasts for further increases, said CIMB Securities Ltd. property analyst Raymond Cheng. As soon as Henderson markets the recently purchased land, units could sell for as much as $28,000 yielding at least 15% margin, Cheng added.
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