Singapore

The Shanghai Pufa Building, which HNA is about to sell, has welcomed a Singaporean buyer.

    On January 7, CapitaLand Group, a large-scale Singapore real estate group, announced that it has established a 50:50 joint venture with an unrelated third-party company to spend 2.752 billion yuan to acquire about 70% of the Shanghai Pudong Development Building in the core business district of Lujiazui, including offices. Buildings 8-19 floors and 21-32 floors, the total construction area above ground is 41773 square meters. CapitaLand Group will invest Pudong Development Building as a seed asset in CapitaLand's upcoming value-added private real estate fund, which will focus on commercial real estate projects in important Asian cities.

    According to a document previously obtained by The Paper, the Shanghai Pufa Building will be completed in July 2022, with 28 years of service life remaining. It covers an area of 6,280 square meters and a building area of 46,379.65 square meters. The total number of floors of the project is 36 floors above ground. It is an office building, commercial building, and a parking lot underground. In terms of operation, the project's revenue in 2017 was 147 million yuan, and the estimated operating income in 2018 was 180 million yuan. HNA stated in the promotion materials that the project’s evaluation value was 2.524 billion yuan.

    Since the end of 2017, HNA Group has started to frequently dispose of multiple assets in its hands on a global scale.

    Chen Feng, chairman of HNA Group, admitted at the 40th anniversary forum of civil aviation reform and opening up in December last year that in the process of rapid development of HNA's global layout, there have been problems with speed and rhythm, and he did not anticipate the possible consequences of environmental changes. "Multiple factors are superimposed, especially the changes in the general trend are not sure and accurate. When the reaction is over, it is too late, and serious liquidity problems are encountered."

    Chen Feng said that since June 2018, HNA has "broke off the arm" and has adopted a series of transformation measures to resolutely implement the strategic requirements of "focusing on the main business of air transportation and healthy development", and make every effort to dispose of non-main business assets and continue to optimize Asset structure, systematically solve liquidity problems, ensure aviation safety, and ensure the steady development of production and operation. At present, HNA has sold a total of nearly 300 billion yuan of non-main business assets.

    While selling non-main business assets, HNA also renamed its HNA Real Estate.

    On November 20, 2018, HNA Real Estate announced that the company name was changed from HNA Real Estate Group Co., Ltd. to Hainan Island Airport Industry Group Co., Ltd., and the new brand name "HNA Airport" was launched.

    After the name change, HNA Airport will adjust its business focus to the development and construction of the airport industry, focusing on two types of projects: the airport industry park and the general aviation town. At the same time, the real estate investment and development in the original business scope will still be retained, but will mainly rely on the industrial park in the future.

    According to the official website of the buyer CapitaLand Group, the company is a large real estate group headquartered in Singapore and listed in Singapore. As of September 30, 2018, CapitaLand Group owns and manages assets totaling more than S$92 billion globally. The Group's global real estate business is diversified, including commercial complexes, shopping malls, serviced apartments, hotels, long-term rental apartments, office buildings, residential buildings, real estate investment trusts and fund businesses, with operations in more than 160 cities in more than 30 countries around the world. The group's business focuses on Singapore and China as its core markets; while Vietnam and Indonesia are emerging markets.