HNA Holding Group, the Hong Kong-listed unit of the Chinese conglomerate HNA Group, is eyeing merger and acquisition deals in the logistics real estate sector, as the group continues its aggressive pursuit of real estate investments globally.
In its 2016 annual report released today, HNA Holding Group said it will target sectors including logistics real estate, logistics warehousing, and logistics transport facilities among others in 2017, while “closely monitoring the economic and trade development situation in the One Belt, One Road initiative, Southeast Asia and other regions”.
Earlier in April, HNA Holdings announced its offer to buy Singapore-listed logistics and commodities firm CWT Group for S$1.4 billion ($1.01 billion; € 920 million). In a stock exchange filing, the group said it would offer S$2.33 each for CWT’s 600.3 million shares.
The Hong Kong investment holding company of the Haikou-headquartered conglomerate has been on a real estate acquisition spree. According to the annual report, the firm generated HK$33.8 million ($4.3 million; €3.9 million) in rental income, and HK$21.3 million in operating profit last year from its UK and US property buys.
These specifically include 17 Columbus Courtyard, the Grade A commercial building in Canary Wharf, London that HNA acquired last year for £140 million; and last December’s purchase of eight golf courses in the US with a total land area of approximately 1,887.32 acres.
The group said in the statement that the UK office building generated rental income of HK$31.5 million to the group in 2016 while the US golf courses added HK$2.3 million to the revenue of the group in 2016.