China’s embattled HNA Group is again selling assets to pay down its debt burden. In a statement to the Hong Kong stock exchange Tuesday, HNA unit Hong Kong International Construction Investment Management Group Co Ltd said it will sell two Hong Kong properties to Henderson Land Development Co Ltd for HK$16 billion (US$2 billion).
Sale of the two pieces of land in Hong Kong’s Kai Tak district, formerly home to Hong Kong’s international airport, is expected to be completed on February 14, according to the disclosure. HNA reportedly acquired the land, through a subsidiary, in 2016 for HK$14.2 billion.
HNA, whose holdings range from airlines to hotels and financial services, has recently been shedding assets to regain financial stability following a two-year, US$50 billion acquisition spree. Along with other major Chinese companies burdened with excessive debt, such as Dalian Wanda and Anbang Insurance, HNA has faced government criticism and increased scrutiny from analysts.
In January, HNA reportedly told creditors that it is facing a liquidity shortage of at least RMB15 billion (US$2.4 billion) as it approached a deadline to repay debts.