Industrials

HNA Group Faces US Regulatory Scrutiny Over Manhattan Building

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Xinyi (Lorraine) Zhu

Published at 2018-08-10 05:42

Summary

China’s HNA Group faced regulatory scrutiny by the Committee on Foreign Investment in the United States (CFIUS) due to concerns over its ownership of an office tower in midtown Manhattan, Bloomberg reported on August 9. Located on 850 Third Avenue, the building is only four blocks away from the Trump Tower and raises potential national security concerns. The Chinese conglomerate admitted that there are “unique facts and circumstances” regarding the location, but denied any “seizure or forced sale” of the property.

Analysis

In 2016, HNA acquired the 617,000 square foot office building in partnership with MHP Real Estate Services, a minority stakeholder, for a total of USD463m. In July, MHP was informed by HNA that the latter’s stake had been placed into a trust, acco

Xinyi (Lorraine) Zhu