HNA’s Kai Tak project receives US$93m capital injection from subsidiary
HNA splashed out a total US$3.48bn on four residential land parcels at Kai Tak through different subsidiaries
A subsidiary of HNA Group, Hong Kong International Construction Investment Management Group (HKCIM), has injected HK$728 million (US$93.24 million) into a land parcel owned by its parent at Kai Tak, the site of Hong Kong’s former airport.
HNA splashed out a total HK$27.2 billion (US$3.48 billion) on four residential land parcels at Kai Tak through different subsidiaries nearly a year ago, to grab a major stake in what is one of Hong Kong’s highest-profile new development projects, the most expensive of which was plot number 6565.
Hong Kong Island Construction Properties Company (HIC), owned by Hisea International, another subsidiary of HNA, paid a record HK$8.8 billion to out bid 19 other contenders last November for 6565.
HKICIM on Friday night said it had partnered with Hisea International to form an investment fund worth HK$6.03 billion to develop the Kai Tak 6565 site.
HKICIM accounts for 12.07 per cent of the fund or the HK$728 million, while Hisea holds the remaining 87.93 per cent.
We are confident about the future development of the Hong Kong property market and in particular the positive outlook of East Kowloon
The latest capital injection comes amid media reports suggesting at least four banks have stopped extending fresh funding to HNA’s construction activities, a sequel to heightened government scrutiny of its asset buying too.
