HNA Pledges HK$3B Stake in Kai Tak Developer to PAG in Return for Loan
Wednesday, February 21, 2018
(Mingtandi by Shawna Kwan) – What was once the site of one of Asia’s most challenging airports is rapidly turning into a lifesaver for China’s debt-addled HNA Group after the mainland conglomerate announced a deal yesterday that could provide it with a loan of as much as HK$3 billion ($383 million) from private equity firm PAG.
Just one day after selling two plots in the Kai Tak area last week for $2 billion, HNA Group pledged a nearly 41 percent stake in the company holding its remaining pair of projects at the former airport site to PAG, in return for an unspecified loan. The cash lifeline comes as the one-time acquisition omnivore gropes for a way to pay off debts built up during a $40 billion global buying spree over the past two years.
The loan from the Hong Kong-based private equity firm adds to more than $5 billion in cash that HNA has scraped together in the last two weeks through fresh credit and sales of properties in New York and Hong Kong.
