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Report: HNA ordered to divest Manhattan, NY, tower stake by US watchdog

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Report: HNA ordered to divest Manhattan, NY, tower stake by US watchdog

Embattled Chinese conglomerate HNA Group Co. Ltd. was ordered by the U.S. government to sell its majority stake in a 21-story Manhattan, N.Y., building near the Trump Tower, The Wall Street Journal reported, citing sources familiar with the matter.

Sources said the mandate was issued by the Committee on Foreign Investment in the U.S., or CFIUS, a few months ago without the inclusion of any reason for the directive to sell the property. CFIUS, which examines investments from offshore investors in the country to determine if they carry national security risks, raised concerns about "some unique facts and circumstances" over the property's location at 850 Third Ave., the Aug. 10 reported cited an HNA spokesman as saying.

HNA bought its 90% interest in the building in 2016 through a transaction that valued the property at US$463 million, WSJ added, citing public records. The skyscraper is situated a few blocks away from the Trump Tower and lists the New York Police Department's 17th precinct as a tenant.

The Chinese conglomerate, which has been on a disposal spree of its global properties over the past few months, is now trying to seek a buyer for the asset, even though the U.S. watchdog has not given it a sell-by deadline, the sources additionally told the paper.