HNA Group Co. Ltd. shareholders rejected the proposed 1.3 billion-yuan divestment of a Beijing office complex to China Vanke Co. Ltd., Mingtiandi reported, citing a filing on the Shanghai Stock Exchange from the Chinese conglomerate.
The two-building Beijing HNA Plaza complex at 2 North East Third Ring Road in the city's Chaoyang district spans 39,000 square meters and includes the Beijing Marriott Hotel Northeast. The rejected deal for the 18-story development reflects a price below comparable transactions in the area, according to the report.
The debt-laden aviation-to-real estate conglomerate was further cited in the Oct. 16 report as saying that shareholders are hoping for a better transaction plan that will deliver superior benefits to both the company and its stakeholders.
The deal values the complex at 39,000 yuan per square meter, and similar office buildings near the property have average asking prices of roughly 80,000 yuan per square meter, the news outlet added, citing a Cushman & Wakefield analyst. When the deal was signed in late September, some analysts had speculated that China Vanke may be taking over unspecified debt related to the property, according to the report.
After selling over US$20 billion assets so far in 2018, the rejection marks the first time that shareholders of the company have blocked a proposed sale during the year, Mingtiandi added.
As of Oct. 16, US$1 was equivalent to 6.91 yuan.