HNA to Sell Property Assets for $456 Million in Latest Disposal

(Bloomberg) -- HNA Group Co. plans to sell a real-estate unit for 2.9 billion yuan ($456 million), in the latest disposal for the embattled Chinese conglomerate as it unloads billions of dollars of assets to pare one of the highest debt loads in the country.

HNA Investment Group Co. will sell a subsidiary that has the right to develop a project in Shanghai to a unit of real-estate developer Fusheng Group, according to a filing with the Shenzhen stock exchange on Wednesday. HNA expects to generate a 400 million yuan gain from the deal, which is subject to shareholders' approval.

HNA, which was once one of China's most acquisitive companies, has sold more than $13 billion of assets this year, including its stake in Hilton Worldwide Holdings Inc. The disposals may help bring some relief to HNA, whose interest expenses surged to a level topping that of any other non-financial company.

HNA Investment shares have been suspended since January. Six other HNA units have also been halted from trading amid asset restructuring.

To contact the reporter on this story: Prudence Ho in Hong Kong at pho83@bloomberg.net.

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Dave McCombs

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