China’s HNA Group, a Chinese conglomerate and owner of China’s fourth-largest carrier Hainan Airline, has continued its overseas property expansion with the acquisition of a commercial building in London’s Canary Wharf for £131 million (€168.2 million; $189.1 million).
According to a recent filing with the Hong Kong stock exchange, HNA International Investments, the Hong Kong-based subsidiary of the group, has closed the deal to acquire 17 Columbus Courtyard.
The building located in the Canary Wharf district is a nine-floor Grade A office property with a total gross floor area of 195,443 square feet. The property is single-let to an investment bank with a lease period until 2024.
According to the Chinese press, news of the deal first came to light late last year, a few months after the KanAm Grund Group, a German real estate investment firm, put the property on the market.
The HNA Group of China has operations in a variety of industries including real estate, aviation and infrastructure.
The deal is HNA Group’s second overseas property acquisition in a month. In early April, the group partnered with MHP Real Estate Services to acquire the 850 Third Avenue in New York. HNA Group owns a 90 percent stake in the 21-story building in Manhattan that was acquired for $463 million from Shorenstein Properties. HNA Property Holdings, HNA Group’s New York-based real estate investment management firm, has been tasked with managing the property.
The subsidiary currently manages more than one million square feet in properties in the US on behalf of its parent company. According to a company statement, the group’s current real estate portfolio in the US totals $1.3 billion, which includes ownership in assets such as the Cassa Hotel, 1180 Sixth Avenue, and two golf courses in California and New York.